Goods and Services Tax

GST – States – Trade Circular No. 37 T of 2017 – Dated:- 24-8-2017 – Office of: Commissioner of Sales Tax, 8th Floor, GST Bhavan, Mazgaon, Mumbai- 400010 Trade Circular To No: JC/Mahavikas/Non-GST Dealers/2017-18/B-536 Mumbai, Date 24/08/2017 Trade Circular No. 37 T of 2017 Sub: Identifying dealers who are effecting sale of non-GST goods after 01/07/2017. Madam/GentIemen, A. Background: 1. The Maharashtra Goods and Services Tax Act, 2017 (hereinafter referred to as MGST Act ), Central Goods and Services Tax Act, 2017 (hereinafter referred to as CGST Act ) and Integrated Goods and Services Tax Act, 2017 (hereinafter referred to as IGST Act ) have come into force from 01/07/2017. 2. By the Maharashtra Act No. XLII of 2017, Clause (12) of Section 2 of the Value Added Tax Act is substituted by the following Clause: (12) goods means petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption 3.

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t effected sale, during the year 2016-17, of any goods, specified in column (2) in SCHEDULE A or, as the case may be SCHEDULE B, as it exists on the appointed date for the Maharashtra Goods and Services Tax Act, shall be deemed to be cancelled with effect from the said appointed date: Provided that, any such dealer, whose registration is deemed to be cancelled, may apply in the prescribed manner for the revocation of the cancellation of his registration, if he intends to carry on the business in these goods. 2. In view of the above amendments, Registration Certificate under Maharashtra Value Added Tax Act, 2002 (hereinafter referred to as MVAT Act ) of those dealers who have not effected any sales of any of six goods mentioned above during 2016-17, shall be deemed to be cancelled wef 01/07/2017. C. Dealers eligible to remain registered under the MVAT/CST Acts even after 01 July 2017: A dealer who continues to do business of selling the goods (after from 01 April 2017) mentioned in para

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n consumption and shall continue to make payment and file return as per periodicity under MVAT Act. (ii) Petrol Pump Dealers: Such dealers shall continue their registration under MVAT Act after 01/07/2017 for the turnover of above mentioned five petroleum products and shall continue to make payment and file return as per periodicity under MVAT Act. E. List of dealers eligible to file VAT/CST returns for the periods from 01 July 2017: A list of dealers dealing in the above mentioned six goods is displayed on the Whats New Section of the website of the Department on the basis of information available with the MSTD. F. Utility to declare liability to pay MVAT/CST for the periods starting from 01 July 2017: The list mentioned in para E above is not exhaustive and there may be dealers whose names may not have included in the said list. In order to create return VAT/CST filing obligations of these dealers, a utility has been made available on the web site www.mahavt.gov.in , using which the

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Sept 2017.The eligible dealers eligible to file monthly returns for July 2017 are requested to choose the option on or before 31 August 2017 so that their return filing obligations for July 2017 gets created. No late fees will be applicable if MVAT/CST dealers file their July 2017 returns on or before 08 Sept 2017. The dealers eligible to file quarterly returns for the periods starting from July 2017 should also choose the said option on or before 15 Sept 2017. H. Brief information about the Option to continue registration under the MVAT/CST : User manual in respect of this utility is available on the website of the MSTD. PI follow the following steps to use the utility. i) For dealers who are registered before 25/05/2016: Log on to www.mahavat.gov.in using your login ID credentials. ii) For dealers registered after 25/05/2016: Log on to www.mahavat.gov.in >Click on e-Registration >New SAP window will be opened > Logon using your login ID credentials. a) Following procedure is

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GST – States – 06/2017 – Dated:- 24-8-2017 – GOVERNMENT OF NAGALAND OFFICE OF THE COMMISSIONER OF TAXES NAGALAND: DIMAPUR Dated Dimapur, the 24th August, 2017 NOTIFICATION-06/2017 NO. CT/LEG/GST-NT/12/17: In exercise of the powers conferred by section 168 of the Nagaland Goods and Services Tax Act, 2017 (4 of 2017) read with sub-rule (5) of rule 61 of the Nagaland Goods and Services Tax Rules, 2017 and notification No. 04/2017 dated 08th August, 2017, the Board, hereby makes the following amendments in the notification of the Government of Nagaland, Office of the Commissioner of Taxes, Nagaland, Dimapur vide No. 05/2017 NO.CT/LEG/GST-NT/12/17 dated the 17th August, 2017, namely:- (i) in the table, (a) in Sl. No. 1, in column (3), for the f

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2017 (8) TMI 1141 – ALLAHABAD HIGH COURT – 2017 (4) G. S. T. L. 445 (All.) – Seeking relief from penal action under GST – petitioner has been registered as sole proprietor in place of a partnership firm – amendment in the registration certificate – Held that:- Let necessary GST ID/ pass word in the name of partnership firm be issued within a period of two weeks from today and the registration certificate be corrected within a week thereafter.
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In the meantime, no penal action would be initiated against the petitioner on non filing of the GST return and deposit of tax thereon provided the returns and the tax is deposited within two weeks of the issuance of the correct registration certificate. – WRIT TAX No. – 583 of 2017 Dated:- 24-8

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Goods and Services Tax – GST – Dated:- 23-8-2017 – Query has been raised regarding GST applicable on selling of space for advertisement in print media. Selling of space for advertisement in print media is leviable to GST @ 5%.If the advertisement agency works on principal to principal basis, that is, buys space from the newspaper and sells such space for advertisement to clients on its own account, that is, as a principal, it would be liable to pay GST @5% on the full amount charged by advertis

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Goods and Services Tax – Started By: – manoj gupta – Dated:- 23-8-2017 Last Replied Date:- 24-8-2017 – We are a merchant exporter dealing in minerals with Nepal. Since our product has no excise, It was simple in previous regeim.Now please advice me how to prepare export invoice. Shall I need to give LUT/BOND to custom/excise departmentor I can export by charging 5 % IGST & getting its credit by submitting shipping bills & bill of lading to authority. – Reply By Himansu Sekhar – The Repl

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Goods and Services Tax – Started By: – NARENDRA KUMAR – Dated:- 23-8-2017 Last Replied Date:- 23-8-2017 – Dear sir, Due to not properly aware from GSTR 3B i had fill GSTR 3B form wrong and submit. Now there is not show any option to revice. Please help and advice how can i change the figure. Thanks DEEPIKA – Reply By KASTURI SETHI – The Reply = What mistake you have committed ? Does the system show tax liability ? Upload the purchase invoices (to be uploaded by your supplier) and sale invoices

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HOW TO AVAIL ITC OF SERVICE TAX PAID UNDER RCM FOR THE MONTH OF JUNE 2017 ON 6TH OF JULY 2017 – Goods and Services Tax – Started By: – SUNIL KRISHNANI – Dated:- 23-8-2017 Last Replied Date:- 24-8-2017 – I have paid service tax on Import of service for the month of Jun 17 on 6th of July, so I have not taken credit in service tax return and in GST TRANS 1 I don't see any column for transitional credit for ST paid in reverse charge, can anyone help me on this ?

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GST – GST Law and Procedure – 009 – Chapter Nine Casual taxable person in GST Introduction: Casual taxable person means a person who occasionally undertakes transactions involving supply of goods or services or both in the course or furtherance of business, whether as principal, agent or in any other capacity, in a State or a Union territory where he has no fixed place of business. A casual taxable person (other than those making supply of specified handicraft goods) making taxable supply in India has to compulsorily take registration. There is no threshold limit for registration. Casual Taxable persons making supply of specified handicraft goods need to register only if their aggregate turnover crosses ₹ 20 Lakh (Rs. 10 lakh for in case of Special Category States, other than the State of Jammu and Kashmir.). A casual taxable person cannot exercise the option to pay tax under composition levy. He has to apply for registration at least five days prior to commencing his business i

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8 19 Pottery and clay products, including terracotta 6901,6909,6911, 6912, 6913, 6914 20 Metal table and kitchen ware (copper, brass ware) 7418 21 Metal statues, images/statues vases, urns and crosses of the type used for decoration of metals of chapters 73 and 74 8306 22 Metal bidriware 8306 23 Musical instruments 92 24 Horn and bone products 96 25 Conch shell crafts 96 26 Bamboo furniture, cane/Rattan furniture 27 Dolls and toys 9503 28 Folk paintings, madhubani, patchitra, Rajasthani miniature 97 29 Chain switch Any chapter 30 Crewel, Namda, Gabba Any chapter 31 Wicker willow products Any chapter 32 Toran Any chapter 33 Articles made of shoal Any chapter A casual taxable person has to make an advance deposit of tax in an amount equivalent to his estimated tax liability for the period for which the registration is sought. Registration: A casual taxable person has to apply for registration at least five days prior to the commencement of business. There is no special form to register a

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mobile number and e-mail address. Using this reference number generated, the applicant shall electronically submit an application in Part B of FORM GST REG-01, duly signed or verified through electronic verification code, along with the documents specified in the said Form at the common portal, either directly or through a Facilitation Centre notified by the Commissioner. The applicant will be given a temporary reference number by the Common Portal for making the mandatory advance deposit of tax for an amount equivalent to the estimated tax liability of such person for the period for which the registration is sought. The registration certificate shall be issued electronically only after the said deposit appears in his electronic cash ledger. The amount deposited shall be credited to the electronic cash ledger of casual taxable person. On depositing the amount, an acknowledgement shall be issued electronically to the applicant in FORM GST REG-02. The casual taxable person can make taxab

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ugh the common portal, either directly or through a Facilitation Centre notified by the Commissioner: a) FORM GSTR-1 giving the details of outward supplies of goods or services to be filed on or before the tenth day of the following month. b) FORM GSTR-2, giving the details of inward supplies to be filed after tenth but before the fifteenth day of the following month. c) FORM GSTR-3 to be filed after fifteenth day but before the twentieth day of the following month. d) FORM GSTR-3B to be filed but before the twentieth day of the following month. It may be mentioned that presently only FORM GSTR-1 and FORM GSTR-3B is required to be filed. Special Returns procedure for registered persons with turnover up to ₹ 1.5 Crore: The government has notified that the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons who shall follow the special procedure as detailed below for

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Crore: The government has notified that the registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year shall furnish the details of outward supply of goods or services or both in FORM GSTR-1 effected during the quarter as specified in column (2) of the Table below till the time period as specified in the corresponding entry in column (3) of the said Table, namely Sr.No. Month for which the details in FORM GSTR-1 are furnished Time period for furnishing the details in FORM GSTR-1 1 July – November, 2017 10th January, 2018 2 December, 2017 10th February, 2018 3 January, 2018 10th March, 2018 4 February, 2018 10th April, 2018 5 March, 2018 10th May, 2018 The special procedure or extension of the time limit for furnishing the details or return, as the case may be, under sub-section (2) of section 38 (GSTR-2) and sub-section (1) of section 39 (GSTR-3) of the Act, for the months of July, 2017 to March, 2018 shall b

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GST – GST Law and Procedure – 044 – Chapter Forty Four National Anti-Profiteering Authority in GST Introduction: Any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit should have been passed on to the recipient by way of commensurate reduction in prices. However it has been the experience of many countries that when GST was introduced there has been a marked increase in inflation and the prices of the commodities. This happened in spite of the availability of the tax credit right from the production stage to the final consumption stage which should have actually reduced the final prices. This was obviously happening because the supplier was not passing on the benefit to the consumer and thereby indulging in illegal profiteering. National Antiprofiteering Authority is therefore being constituted by the central Government to examine whether input tax credits availed by any registered person or the reduction in the tax rate have actually resul

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tax on the supply of goods or services or the benefit of input tax credit has been passed on by the registered person to the recipient by way of commensurate reduction in prices. Duties of the Authority: The Authority would have the following duties: (i) to determine whether any reduction in the rate of tax on any supply of goods or services or the benefit of input tax credit has been passed on to the recipient by way of commensurate reduction in prices; (ii) to identify the registered person who has not passed on the benefit of reduction in the rate of tax on supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices; (iii) to order, (a) reduction in prices; (b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount o

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hall consist of such officers of the State Government and Central Government as may be nominated by the GST council, for further action. If the Standing Committee is satisfied that there is a primafacie evidence to show that the supplier has not passed on the benefit of reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, it shall refer the matter to the Director General of Safeguards for a detailed investigation. Investigation: The Director General of Safeguards shall conduct investigation and collect evidence necessary to determine undue profiteering and before initiation of the investigation, issue a notice to the interested parties (and to such other persons as deemed fit for a fair enquiry into the matter) containing, inter alia, information on the following, namely: – (a) the description of the goods or services in respect of which the proceedings have been initiated; (b) su

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as that of a civil court and every such inquiry will be deemed to be a judicial proceeding. The Director General of Safeguards will complete the investigation within a period of three months or within such extended period not exceeding a further period of three months for reasons to be recorded in writing as allowed by the Standing Committee and, upon completion of the investigation, furnish to the Authority, a report of its findings along with the relevant records. Order of the Authority: The Authority shall (after granting an opportunity of hearing to the interested parties if so requested) within a period of three months from the date of the receipt of the report from the Director General of Safeguards determine whether a registered person has passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices. If the Members of the Authority differ in opinion on

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GST – GST Law and Procedure – 010 – Chapter Ten Input Service Distributor in GST Introduction Input Service Distributor (ISD) means an office of the supplier of goods or services or both which receives tax invoices towards receipt of input services and issues a prescribed document for the purposes of distributing the credit of central tax (CGST), State tax (SGST)/ Union territory tax (UTGST) or integrated tax (IGST) paid on the said services to a supplier of taxable goods or services or both having same PAN as that of the ISD. It is important to note that the ISD mechanism is meant only for distributing the credit on common invoices pertaining to input services only and not goods (inputs or capital goods). Companies may have their head office at one place and units at other places which may be registered separately. The Head Office would be procuring certain services which would be for common utilization of all units across the country. The bills for such expenses would be raised on t

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purposes of distributing the input tax credit, an ISD has to issue an ISD invoice, as prescribed in rule 54(1) of the CGST Rules, 2017, clearly indicating in such invoice that it is issued only for distribution of input tax credit. The input tax credit available for distribution in a month shall be distributed in the same month and details furnished in FORM GSTR-6. Further, an ISD shall separately distribute both the amount of ineligible and eligible input tax credit. The input tax credit on account of central tax and State tax or UT tax in respect of recipient located in the same state shall be distributed as central tax and State tax or UT tax respectively. The input tax credit on account of central tax and State tax or UT tax shall, in respect of a recipient located in a State or Union territory other than that of the ISD, be distributed as integrated tax and the amount to be so distributed shall be equal to the aggregate of the amount of input tax credit of central tax and State t

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an distribute central tax, State tax as well as integrated tax of ₹ 15 lakh as credit of integrated tax amongst its locations at Bangalore, Chennai, Mumbai and Kolkata through an ISD invoice containing the amount of credit distributed. So in what ratio will the credit be distributed by the ISD? The credit has to be distributed only to the unit to which the supply is directly attributable to. If input services are attributable to more than one recipient of credit, the distribution shall be in the pro-rata basis of turnover in the State/Union Territory. For example, if an ISD has 4 units across the country. However, if a particular input service pertains exclusively to only one unit and the bill is raised in the name of ISD, the ISD can distribute the credit only to that unit and not to other units. If the input services are common for all units, then it will be distributed according to the ratio of turnover of all the units. The following illustration will clarify the issue M/s XY

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nit. 300000 300000 0 0 IGST, CGST & SGST paid on services used in all units-Distribution on pro rata basis to all the units which are operational in the current year 1200000 600000 360000 240000 Total 1500000 900000 360000 240000 Note 1: Credit distributed pro rata basis on the basis of the turnover of all the units is as under: – a) Unit Mumbai: (50000000/100000000) *1200000 = ₹ 600000 b) Unit Jabalpur: (30000000/100000000) *1200000 = ₹ 360000 c) Unit Delhi: (20000000/100000000) *1200000 = ₹ 240000 An ISD will have to file monthly returns in GSTR-6 within thirteen days after the end of the month and will have to furnish information of all ISD invoices issued. The details in the returns will be made available to the respective recipients in their GSTR 2A. The recipients may include these in its GSTR-2 and take credit. An ISD shall not be required to file Annual return. An ISD cannot accept any invoices on which tax is to be discharged under reverse charge mechanis

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Goods and Services Tax – Started By: – Murari Agrawal – Dated:- 23-8-2017 Last Replied Date:- 24-8-2017 – We have taken a car on monthly hire charges for use of factory. Hire charges include Fuel Charges & driver's salary. The Service Provider is unregistered. Under which SAC No. reverse GST is payable and whether we can take credit of such reverse payment. Thanks, – Reply By KASTURI SETHI – The Reply = SAC 9966 5% without ITC 12 % with ITC Earlier it was 18%. Reduced in the meeting GST Council held on 5 & 6.8.17 – Reply By Murari Agrawal – The Reply = Thanks Sir, pl clarify can we pay 12% on reverse charge basis and take ITC ? This question arises because no ITC is available on purchase of Car. Also, the condition of use in fu

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Goods and Services Tax – Started By: – PAWANKUMAR GARG – Dated:- 23-8-2017 Last Replied Date:- 24-8-2017 – SIR, ONE OF MY CLIENT IS A CHAKKI OWNER HAVING GST NO. PLEASE CLARIFY THAT WHETHER GST IS PAYABLE ON PISSI CHARGES. IF YES THEN THE RATE OF TAX. – Reply By Himansu Sekhar – The Reply = What is pissi charge? – Reply By KASTURI SETHI – The Reply = He wants to say grinding charges. By way of pisai , wheat grain is converted into flour (Atta). It may be under 'Not else where specified'

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Goods and Services Tax – Started By: – Mina Agarwal – Dated:- 23-8-2017 Last Replied Date:- 25-8-2017 – We have to pay GST on reverse basis on freight paid to transporter so my query is what is the rate of Reverse Charge ? Is credit available to the service recipient on tax paid? – Reply By KASTURI SETHI – The Reply = GST@ 5%. First pay deposit in cash and then take credit on the strength of challan. – Reply By Himansu Sekhar – The Reply = Correct view sir – Reply By usha sharma – The Reply = S

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Goods and Services Tax – Started By: – Mina Agarwal – Dated:- 23-8-2017 Last Replied Date:- 23-8-2017 – 1. Can Input credit be claimed on construction of warehouse and can Input credit be claimed with respect to materials like cement, bricks purchased for that ?2. Is RCM applicable on payment made to contractor, vendor of materials for construction of warehouse ? – Reply By Himansu Sekhar – The Reply = 1. No it is forbidden under sec 17(5) 2.If the service providers are unregistered, RCM is a a

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Goods and Services Tax – GST – By: – RAMESH PRAJAPATI – Dated:- 23-8-2017 – Rule 83 of the CGST Rules 2017 provides that any person who, (i) is a citizen of India; (ii) is a person of sound mind; (iii) is not adjudicated as insolvent; (iv) has not been convicted by a competent court and satisfies any of the following conditions, namely:- that he is a retired officer of the Commercial Tax Department ….. that he has enrolled as a sales tax practitioner or tax return preparer under the existing law ………. he has passed, a graduate or postgraduate degree or its equivalent examination having a degree in Commerce, Law, Banking including Higher Auditing, or Business Administration or Business Management from any Indian U

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ation in the Form GST PCT-01, the GST officer shall, after making such enquiry as he considers necessary, enrol the applicant as a goods and services tax practitioner and issue a certificate to that effect in FORM GST PCT-02 or reject his application where it is found that the applicant is not qualified to be enrolled as a goods and services tax practitioner. Such enrolment shall be valid until it is cancelled. Rule further states that no person enrolled as a goods and services tax practitioner shall be eligible to remain enrolled unless he passes such examination conducted at such periods and by such authority as may be notified by the Commissioner on the recommendations of the Council. A goods and services tax practitioner enrolled in any

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itioner to prepare and furnish his return; and before confirming submission of any statement prepared by the goods and services tax practitioner, ensure that the facts mentioned in the return are true and correct. The goods and services tax practitioner shall- prepare the statements with due diligence; and affix his digital signature on the statements prepared by him or electronically verify using his credentials. A goods and service tax practitioner shall be eligible to attend before any authority in connection with any proceedings under the Act on behalf of any registered person (for unregistered also). He shall produce before such authority a copy of the authorisation given by such person in FORM GST PCT-05. If any goods and services tax

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Goods and Services Tax – GST – By: – Sanjeev Singhal – Dated:- 23-8-2017 Last Replied Date:- 30-8-2017 – Procedure of Refund in GST is time bound and if not paid in time will be subject to interest. It seems to be simple . Circumstances are defined under which tax payer shall be eligible to file for refund and same shall be process as per the prescribed law. Refund of GST is prescribed in Section- 54 of the CGST Act,2017. Applicability and Procedure Any person may make an application to the proper officer of IGST/CGST/SGST for refund of Tax and Interest, if any amount paid by him before the expiry of two years from the relevant date. But any taxable person , claiming any refund of any balance in electronic cash ledger u/s 49[6], may claim the same in return filed u/s 39. Any specialized agency of United Nation Organisation , consulate or embassy of foreign countries or any multilateral Financial Institution or Organization or any person or class of person mentioned under u/s 55, may c

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e declaration to certify that such tax and interest has not been passed on to any other person. On receipt of application if proper officer is satisfy that the whole or part of refund is refundable and will pass the order and the amount so determine shall be credited to fund u/s 57 i.e consumer welfare fund. [Section 54[5] ] Proper officer on zero rated supply of goods or services or both may refund 90% of the claim on provisional basis. And pass final order after due verification of documents. The above claim of refund shall be issued within 60 days from the date of receipt of application. However as mentioned in sub section 54[5], refundable amount instead of being credited to fund account , can be credited to applicant , if such amount is relatable to Refund of tax paid on zero rated supplies of goods or services or both or on input or input services used in making such zero rated supplies. Refund of unutilized input tax credit as per section 54[3]. Refund of tax paid on supply whic

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er shall provide the GST RFD-2 to the applicant as acknowledgement on the common portal. Claims other than electronic cash ledger, application shall be forward to proper officer who will examine the correctness of the application within 15 days of filing and acknowledge the same on Form-GST RFD -2 clearly stating the date of filing the application. Where any deficiency is noticed, the proper officer shall intimate the same on Form- GST RFD-3 to the applicant. To avoid the holding of capital of exporters, it has been provided to refund the 90% of the claim with in 7 days of the acknowledgment of claim. And will pass Order on Form -GST RFD-4 to the effect. Refund in case of international tourist ; [Section 15 of the IGST Act,2017] IGST paid by any international tourist taking supply of goods out of India. Tourist means person not normally resident of India who enter into India for stay not more than six months. Relevant Date as mentioned above In case of export of goods out of India. In

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pplication for refund of tax, interest ,fees or any other amount] Any person other than the person covered under notification under section -55 and refund of integrated tax paid on export of goods out of India, may file application on GST RFD-01. Though the refund of balance in Electronic Cash Ledger may be claimed through the return filed as GSTR-3, GSTR-4 and GSTR-7 as per the provision of Section 49[6] In case of supplies to SEZ unit or SEZ developer application shall be filed by supplier of goods or services as endorsed by the specified officer of the zone. In case of supplies regarded as deemed export , the application shall be filed by recipient of deemed export supplies. The application in annexure -1 of Form-GST RFD -1 shall be filed along with any of the following document; Reference number and copy of the order passed by competent authority In case refund is on account of export of goods, statement containing the number and date of shipping bills or bills of export and number

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her amount has not been passed on to the any other person where the amount does not exceed ₹ 2 lacs. Declaration is not required in case of clause a,b,c,d or f of section 54[8]. Certificate in Annexure -2 shall be issued by chartered accountant or cost accountants to the effect that the tax, interest and any other amount has not been passed on to the any other person where the amount exceed ₹ 2 lacs. Certification is not required in case of clause a,b,c,d or f of section 54[8] Where the refund relates to ITC , supplier will debit the Electronic Credit Ledger. In case of zero rated supply of goods or services or both under Bond or LUT as per the provision of section 16[3] of the IGST Act, 2017 refund of ITC shall be granted as per the following formula; Refund =(turnover of zero rated supply of goods + turnover of zero rated supply of services)X Net ITC /adjusted turnover Rule -90 [ Acknowledgement of Application ] Acknowledgement on GST RFD -02 shall be issued to applicant

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t refund has to be upheld, he may do so by passing an order in Part B of GST RFD -07. Where whole or nay part of the refund is not payable , notice in GST RFD-08 will be issued requiring the applicant to file GST RFD-09 within 15 days. Where proper officer is satisfy that refund under section 54[1,2 and 8] is payable issue order in GST RFD -06 and payment advice on GST RFD-05. Rule -93 [ Credit of amount of rejected refund claim ] Where any deficiency is communicated , the amount debited under rule-89 shall be re-credited to the electronic credit ledger a/c. Where any interest is payable along with refund shall be paid and intimated on GST RFD-05 . Rule -95 [ Refund of tax to certain persons ] Where any refund is payable to eligible person u/s 55 on input credit , shall apply on GST RFD -10 once in every quarter, electronically once in every quarter on common portal along with statement of inward supply of goods or services on GST RFD-11. Applicant shall be entitle for refund if Goods

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on export of goods or services under bond or letter of undertaking. Any registered person supply goods or services for export without payment of IGST on bond or LUT, if he apply on GST RFD-11 to the Jurisdictional Commissioner and bind himself that he will pay the tax and interest if the export could not done as follows 15 days after the expiry of three months from the date of issue of invoice, if the goods are not exported out of India. 15 days after the expiry of one year from the date of issue of invoice of services , if the payment is not received in convertible foreign exchange. The detail of such export invoices shall be provided in GSTR-1. – Reply By Ramakrishnan Ananthakrishnan – The Reply = Please confirm refund of IGST paid is equal to erstwhile Rule 18 of Central Excise Rues, 2002, wherein the duty payment can be adjusted against available Cenvat Credit and rebate of duty for the export of goods. [OR} the exporter should pay the IGST by remitting Cash through Challan where

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Goods and Services Tax – GST – By: – CA.VINOD CHAURASIA – Dated:- 23-8-2017 Last Replied Date:- 27-8-2017 – I. Introduction Imports Under GST regime, Art. 269A of Constitution mandates the supply of goods or services or both in the course of import in to the territory of India shall be deemed to be the supply of goods or services or both in the course of inter-state trade or commerce for levy of IGST. IGST on import of goods would be levied under Customs Act, 1962 read with Customs Tariff Act, 1975. IGST on import of services would be leviable under IGST Act and importers will have to pay tax on RCM basis. But IGST on import of OIDAR services by unregistered, non taxable recipients shall be paid on Forward charge basis by the supplier located outside India either by getting registered himself under the Act or will have to appoint a person in India for payment of taxes. Supply of goods or services to SEZ unit or SEZ developershall be treated as interstate supply and shall be subject to

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CVD. 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 and GST Compensation cess, wherever applicable, would be levied on cargo that would arrive on or after 1st July, 2017. 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. Ex-bond bill of entry filed on or after 1st July 2017 would also attract IGST and GST Compensation cess, as applicable. In the case where cargo arrival is after 1st July and an advance bill of entry was filed before 1st July along with the payment of duty, the bill of entry may be recalled and reassessed by the proper officer for levy of IGST and GST compensation Cess, as applicable. III. Duty Calculation IGST rates have been notified through notification 01/2017-Integrated Tax (Rate), dated 28-06-2017. IGST rate on any product can be ascertained by selecting the correct Sl. No. a

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(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 IGST Rates of Goods, Chapter wise IGST rate, GST Compensation Cess rates, IGST Exemption/Concession are available on CBEC website. Valuation and method of calculation IGST is calculated on the value of: 1. imported article determined under sub-section (1) of section 14 of the Customs Act, 1962 or the tariff value fixed under sub-section (2) of the that section; and 2. any duty of Customs chargeable on that article under section 12 of the Customs Act, 1962 and any sum chargeable on that article under any law for the time being in force as an addition to, or as duty of Customs but does not include to the tax referred in the sub-section 7 (IGST) and sub-section 9 (Compensation Cess). GST Compensation cess is calculated on the value of: 1. the imported article for the purpose of levying GST Compensation cess shall be, assessab

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) Education cess – 2% (4) Higher education cess -1% In view of the above parameters, the calculation of duty would be as below: (a) BCD = ₹ 10 [10% of A.V.] (b) Education cess- ₹ 0.2 [2% of (a)] (c) Higher education cess- ₹ 0.1 [1% of (a)] (d) IGST- ₹ 13.236 [A.V.+(a) +(b) +(c)]x12% Case 2. Where product does not attract CVD but attract IGST as well as compensation cess Suppose Assessable Value (A.V.) including landing charges =Rs. 100/- (1) BCD- 10% (2) IGST-12% (3) Education cess – 2% (4) Higher education cess -1% (5) Compensation cess- 10% In view of the above parameters, the calculation of duty would be as below: (a) BCD = ₹ 10 [10% of A.V.] (b) Education cess- ₹ 0.2 [2% of (a)] (c) Higher education cess- ₹ 0.1 [1% of (a)] (d) IGST- ₹ 13.236 [A.V.+(a)+(b)+(c)]x12% (e) Compensation cess- ₹ 11.03 [A.V.+(a)+(b)+(c)]x 10% Case 3. Where product attract both CVD & IGST: Suppose Assessable Value (A.V.) including landing charges =Rs

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nsation cess – ₹ 12.389 [A.V.+(a)+(b)+(c)+(d)]x 10% Note: In cases where imported goods are liable to Anti-Dumping Duty or Safeguard Duty, calculation of Anti-Dumping Duty or Safeguard duty would be as per the respective notification issued for levy of such duty. It is also clarified that value for calculation of IGST as well as Compensation Cess shall also include Anti-Dumping Duty amount and Safeguard duty amount. The Custom duty calculator inclusive of IGST and GST Compensation Cess would be available on CBEC website (https://www.cbec.gov.in) and ICEGATE website (https://www.icegate.gov.in). IV. Place of Supply As per section 11 of IGST Act, the place of supply for goods, imported into India shall be the location of the importer. For example, importer is located in MP, state tax component of IGST shall accrue to the state of MP. V. Changes in import procedures Importer Exporter Code (IEC) An importer has to mandatorily declare GST Registration number (GSTIN) along with Import

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s 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. VII. Imports by EOUs/EHTPs/STPs Imports by EOUs/EHTPs/STPs will attract IGST from Ist July, 2017. 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. Thus, GST would be leviable on the import of input goods or services or both used in the manufacture by EOUs/ EHTPs/STPs wh

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and duty is paid on merit. In the GST regime, for the purpose of levying IGST all the imports under the project import scheme will be classified under heading 9801 and duty shall be levied @ 18%. X. 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 as provided under the Baggage Rules, 2016. XI. 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

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which are out of the GST net would be eligible for SAD refunds as earlier. XII. Imports and Input Tax Credit (ITC) In GST regime, input tax credit of the integrated tax (IGST) and GST Compensation Cess shall be available to the importer and later to the recipients in the supply chain. 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) along with Import Export Code 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 docu

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GST – States – 09/2017 – Dated:- 23-8-2017 – GOVERNMENT OF TELANGANA COMMERCIAL TAXES DEPARTMENT TGST Notification No. 09/2017 CCT s Ref No. A(1)/103/2017, Dt. 23-08-2017 In exercise of the powers conferred by section 168 of the Telangana Goods and Services Tax Act, 2017 (23 of 2017) (hereafter in this notification referred to as the said Act ) read with sub-rule (5) of rule 61 of the Telangana Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said Rules ) and notification No. 7/2017- State Tax dated 19th August, 2017, the Commissioner, on the recommendations of the Council, hereby specifies the conditions in column (4) of the Table below, for furnishing the return in FORM GSTR-3B electronically through

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ile FORM GST TRAN-1 on or before the 28th August, 2017 28th August, 2017 (i) compute the tax payable under the said Act for the month of July, 2017 and deposit the same in cash as per the provisions of rule 87 of the said Rules on or before the 25th August, 2017; (ii) file FORM GST TRAN-1 under sub-rule (1) of rule 117 of the said Rules before the filing of FORM GSTR- 3B; (iii) where the amount of tax payable under the said Act for the month of July, 2017, as detailed in the return furnished in FORM GSTR-3B, exceeds the amount of tax deposited in cash as per item (i), the registered person shall pay such excess amount in cash in accordance with the provisions of rule 87 of the said Rules on or before 28th August, 2017 along with the applica

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Goods and Services Tax – GST – Services provided in relation to admission or access to planetarium included within the category of Recreational, cultural and sporting services – See Sr. no. 34(i) of t

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Goods and Services Tax – GST – Rates of IGST reduced from 18% to 12% in case of Supply of Services by way of printing of newspapers, books (including Braille books), journals and periodicals, where on

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Goods and Services Tax – GST – Job Work – The benefit of reduced rates of IGST @5% extended to Job work of Textile articles, Articles of apparel and clothing accessories including Ready Made Garments,

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Goods and Services Tax – GST – IGST rates reduced on specified Composite supply of works contract from 18% to 12% – See Sr. 3 of the amended notification. – TMI Updates – Highlights

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Goods and Services Tax – GST – option given to GTA & transport of passengers by motorcab service providers to avail full ITC & discharge IGST @ 12% (6% CGST, 6% SGST) or not to avail ITC & discharge I

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Goods and Services Tax – GST – electronic commerce operator (ECO) shall also be liable to pay gst for the services by way of house-keeping, such as plumbing, carpentering etc. where the turnover of th

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Goods and Services Tax – GST – Reverse Charge Mechanism (RCM) in the case of GTA – Now RCM will be applicable where the GTA has not paid the IGST @12% (or CGST / SGST @6%) only – See notification as amended – TMI Updates – Highlights

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