Due date for Form GSTR-3B extended for those claiming input tax credit u/s 140, Rule 117.
Notifications
GST
Due date of furnishing Form GSTR-3B extended for the Registered persons entitled to
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Government Departments No Longer Need to Provide Bank Details for Supplier Registration in Form GST REG-01 Amendment.
Forms
GST
Government departments applying for registration as suppliers m
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Authority for Advance Ruling Now Requires Members to Be at Least Joint Commissioner Rank per Rule 103 Amendments.
Act-Rules
GST
Member of the Authority for Advance Ruling shall not be below t
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GST Payment for OIDAR Services to Non-Taxable Recipients via ACES or SWIFT per Amended Rules 87(2) & 87(3).
Act-Rules
GST
Electronic Cash Ledger – payment of GST towards supplying online information and database access or retrieval services (OIDAR) from a place outside India to a non-taxable online recipient can be paid either through ACES or through international money transfer through Society for Worldwide Interbank Financial Telecommunication payment network – See Rule 87(2) and 87(3
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GST Payment Challan Valid for 15 Days Under Amended Rule 87(2) Using Form GST PMT-06.
Act-Rules
GST
Electronic Cash Ledger – Challan Generated for payment of GST in Form GST PMT-06 shall be v
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GST on voluntary – below threshold entities
Query (Issue) Started By: – Jabira S Dated:- 18-8-2017 Last Reply Date:- 20-8-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Hi,
The threshold for GST for entities is 20L, and in case of entities below the threshold, though there is no need of registering with GST, dealing with other entities (with GST ) enforces them to register for GST. In these cases, which normally is voluntary registraton, it is not fair that these kind of entities are made to pay GST , irrespective of the threshold limit.
Please let me know if my understanding is wrong and if there is any clause which helps entities under threshold limit to get waiver on GST.
Regards
Nishi/Jabira
Reply By KASTURI SETH
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Shipping Bill or Bill Of Export
Query (Issue) Started By: – Rajesh Karia Dated:- 18-8-2017 Last Reply Date:- 1-6-2018 Goods and Services Tax – GST
Got 10 Replies
GST
We are a small company dealing in Pharma API supplying majorly within India & some small exports to Nepal which is via Road Transport. We are preparing the GSTR1 online & uploading invoices to GST portals for the month of July. In the section 6A where we have to mention the Export Invoice details, we have to mention "Shipping Bill No./Bill of Export No".
Now as we are exporting to Nepal via Road, so what would be the "Shipping Bill No./Bill of Export No"? is it the LR (Lorry Receipt) No. issued by the transporter or something else?
Any guidanc
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provide by transporter to the customs?
Reply By RAMESH PRAJAPATI:
The Reply:
You should have a CHA ( Customs House Agent) for filing of Bill of Export. If export proceeds are to be realized in Indian Rupees then your GST Invoice can be used for filing of Bill of Export. If your order is inForeign Currency, then export invoice in FE is required.
Reply By Rajesh Karia:
The Reply:
Yes, my Nepal exports are in INR, hence my Export Invoice No can be used as shipping Invoice?
Reply By RAMESH PRAJAPATI:
The Reply:
Yes, your GST Tax Invoice issued for export will serve the purpose.
Reply By Rajesh Karia:
The Reply:
Thanks, Mr.Ramesh for your valuable time & feedback.
Reply By RAMESH PRAJAPATI:
The Reply:
It's my pleasure.
Reply By Kr
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Commissioner Empowered to Set Conditions for Form GSTR-3B Submission under Amended Rule 61(5) in GST Regulations.
Act-Rules
GST
Commissioner empowered to specified the conditions for submitti
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ITC for CVD on imported gold dore bars before July 1, 2017, limited to one-sixth per Rule 44A.
Act-Rules
GST
ITC of CVD paid on stock of imported Gold dore bar before 1.7.2017 restricted to o
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Rule 44A
Manner of reversal of credit of Additional duty of Customs in respect of Gold dore bar
GST
Input Tax Credit
Rule 44A of Central Goods and Services Tax Rules, 2017
1[44A. Manner of reversal of credit of Additional duty of Customs in respect of Gold dore bar.-
The credit of Central tax in the electronic credit ledger taken in terms of the provisions of section 140 relating to the CENVAT Credit carried forward which had accrued on account of payment of the additional duty
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Sub-Rule 1(b) of Rule 40 amended: Changes to claiming credit and Form GST ITC-01 filing deadline.
Act-Rules
GST
Manner of claiming credit in special circumstances – Sub-Rule 1(b) of Rule 40 s
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Rule 17 Amended: Proper Officers Gain Expanded Authority to Assign Unique Identity Numbers for Special Entities Under GST.
Act-Rules
GST
Assignment of Unique Identity Number (UIN) to certain
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GST Rule 3 Amended: Stock Statement Filing Deadline Extended to 90 Days for Composition Scheme Opt-ins.
Act-Rules
GST
Due date for filing of Stock statement in FORM GST CMP-03 extended from 6
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Application for Unique Identity Number for UN Bodies and Embassies under GST Tax Exemption Framework.
Forms
GST
FORM GST REG-13 – Application/ Form for grant of Unique Identity Number (UIN) t
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GST Applicability on Employee apartment rent and input tax credit
Query (Issue) Started By: – AnilKumar Vyas Dated:- 18-8-2017 Last Reply Date:- 19-8-2017 Goods and Services Tax – GST
Got 4 Replies
GST
Dear Experts,
Thanks for your valuable support …………
We are a manufacturing unit, our some foreign expat living in residential service apartment. all the employees are related to production and quality related job. Please suggest, is ITC of GST available on this service?
Some of employees living in residential apartment (not service apartment). is GST applicable on these residential property rental service. if yes, please also suggest, availability of ITC.
Regards
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
S
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Finance Minister Sh Arun Jaitley writes to State Chief Ministers to reduce burden of Value Added Tax on Petroleum Products used for manufacturing
GST
Dated:- 18-8-2017
The Union Minister of Finance, Defence and Corporate Affairs, Shri Arun Jaitley has written to State Chief Ministers urging the States to reduce burden of Value Added Tax (VAT) on Petroleum Products used as inputs in making of goods after the introduction of Goods and Services Tax (GST).
The letter by Finance Minister highlights a concern being raised by the manufacturing sector in the country regarding the rise in input costs of petroleum products happening on account of transition to Goods and Services Tax regime. In the pre-GST regime, because the petroleum
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Canteen Service Provider
Query (Issue) Started By: – Saurabh Singh Dated:- 18-8-2017 Last Reply Date:- 18-12-2017 Goods and Services Tax – GST
Got 9 Replies
GST
I am running a canteen inside the premises of a Pvt. Ltd. Company. What are my obligation in GST ? I have to provide food at subsidized rates to the employees for which I also get some amount from the company.
Plz advice
Reply By RAMESH PRAJAPATI:
The Reply:
You will have to take GST Registration if turnover exceeds 20 lacs and after that you have to pay GST on the open market value of the food of the same / similar quality.
Reply By Rajagopalan Ranganathan:
The Reply:
Sir,
Sl. No. 7 (i) of Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 indicates that "Supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or drink, where such supply or service is for cash, deferred payment or other valuable considerati
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t of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink, where such supply or service is for cash, deferred payment or other valuable consideration, provided by a restaurant, eating joint including mess, canteen, having the facility of air-conditioning or central air-heating in any part of the establishment, at any time during the year is chargeable to CGST @ 9%.
Sl. No. 7 (v) of Notification No. 11/2017-Central Tax (Rate) dated 2806.2017 indicates that "Supply, by way of or as part of any service or in any other manner whatsoever in outdoor catering wherein goods, being food or any other article for human consumption or any drink (whether or not alcoholic liquor for human consumption), as a part of such outdoor catering and such supply or service is for cash, deferred payment or other valuable consideration is chargeable to CGST @ 9%.
The CGST is chargeable on the transaction value of the food supplied.
R
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ply By Saurabh Singh:
The Reply:
Rate of tax given in the notification is 9 %. The rate would be CGST 9 % and SGST 9%. Please consider the above example by considering this tax rate.
Reply By KASTURI SETHI:
The Reply:
Rate of GST is 9 % + 9 %. You have seen 9 % under CGST notification. No dispute is about SGST 9 %. The benefit of subsidy is available if you receive subsidy from. Govt. You would pay from your pocket.
Reply By Brijesh Singh:
The Reply:
I am running a canteen inside the premises of IOCL.
In my contract this clause is given "The quoted rates shall be valid till the validity of the contract. All the rates shall be inclusive of all taxes, octroi, duties, surcharges, levies, transportation etc. and no extra cost will be paid by the Corporation on this account. Only Service Tax shall be payable extra as applicable. Works Contract Tax/ Sales Tax/ VAT applicable (existing or fresh) has to be borne by the contractor."
According to the above quate should i get GST
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PRESS NOTE ON FILING OF RETURN IN FORM GSTR-3B FOR JULY, 2017
GST
Dated:- 18-8-2017
GST Council had earlier decided to defer the filing of return in FORM GSTR-3 and had recommended the filing of return in FORM GSTR-3B. Accordingly, the Central Government vide notification No. 21/2017-Central Tax dated 08.08.2017 had notified the last date for filing of return in FORM GSTR-3B for the month of July, 2017 as 20.08.2017.
2. Concerns have been raised by the trade about whether transitional credit would be available for discharging the tax liability for the month of July, 2017. In this regard, attention is invited to notification No. 23/2017-Central tax dated 17.08.2017 wherein the date and conditions for filing the return in FORM
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ebiting the electronic credit or cash ledger.
B. Registered persons planning to avail transitional credit for discharging the tax liability for the month of July, 2017 need to follow the steps as detailed below:
I. Calculate the tax payable as per the following formula:
Tax payable = (Output tax liability + Tax payable under reverse charge) – (transitional credit + input tax credit availed for the month of July, 2017);
II. Tax payable as per (i) above to be deposited in cash on or before 20.08.2017 which will get credited to electronic cash ledger;
III. File FORM GST TRAN-1 (which will be available on the common portal from 21.08.2017) before filing the return in FORM GSTR-3B;
IV. In case the tax payable as per the return in FORM GSTR
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On Clarification regarding availability of Transitional Credit for GST
GST
Dated:- 18-8-2017
As per the rules, the Goods and Services Tax (GST) for the month of July 2017 has to be paid by 20th August, 2017. Only after the payment of full GST, return in summary Form 3B can be filed.
Concerns have been raised about the form for claiming transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21st August, 2017. In v
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All about GSTR-3B
By: – CA.VINOD CHAURASIA
Goods and Services Tax – GST
Dated:- 18-8-2017
All about GSTR-3B
Introduction: This article discusses in detail about GSTR- 3B, its related aspects & its filling process.
For months of July and August GSTR1 and GSTR2 are not to be filed and thus GSTR3 will not be formed because it is the auto-populated form and thus GSTR-3B comes into scenario.
So, GSTR-3B has to be filed in lieu of GSTR3 for the months of July and August as below:
* For the month of July 2017 – To be submitted by Aug 20th , 2017; and
* For the month of August 2017 – To be submitted by Sept 20th
It is Mandatory to file GSTR-3B and there is no exemption from filing GSTR-3B even if you have not carried on any business in the month of July'2017.
NIL GSTR-3B is also to be filed mandatorily.
GSTR-3B is the provisional return for the month of July'2017. Therefore all dealers who are required to file monthly returns under the GST Regime are required to file
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ember about filing GSTR-3B is that the transitional credits available from the previous VAT/Service Tax/Excise regimes will not be available for credit and use in GSTR-3B. Any such credits have to be shown by filing form TRAN-1 and will be available for use only after filing TRAN-1.
GSTR-3B is to be filed from the period from which the registration is taken by the supplier. Therefore, if you have taken registration in the month of August'2017 the option for filing GSTR-3B for July'2017 will not be available and the no GSTR-3B is to be filed for July'2017.
GSTR-3B is to be filed through online mode on the GST Portal gst.gov.in
Following details are to be shown in the return GSTR-3B.
* GSTIN number of Registered Person
* Legal name of Registered Person
* Summary of Outward Supply & Inward Supply under Reverse Charge
* Bifurcation of Inter-state outward supplies as follows:
* To unregistered Person
* To Composite taxable Person
* To UIN Holders
5. Summary of eligible
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d by cash.
GSTR-3B can be submitted through digital signatures or Electronic verification code except for Companies where it has to be filed by digital signatures.
GSTR-3B is a simplified return where only total figures of purchases, sales input tax credits and payments are to be entered.
Individual entries for each sale invoice are not to be entered in this return.
Data in GSTR-3B has to be provided in a consolidated manner i.e. the consolidated amount in respect of information asked has to be furnished.
So, taxpayer will be required to consolidate their sales and purchase data for the month for the purpose of filing GSTR-3B.
GSTR3B is the consolidated return form being filed for temporary purpose and proper returns has to be filed for both the months.
So, GSTR1, GSTR2 and GSTR3 for the month of July and August have to be filed in September.
In GSTR-3B, any amendment in invoice issued has to be adjusted against the invoice amount and the net adjusted amount has to be shown and
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y. Click Search and Select GSTR-3B
* Declare your liabilities and ITC claims in Section 3.1 and 4 respectively by clicking on the tiles and furnishing the required information. Transitional ITC cannot be claimed in GSTR 3B. It can be claimed only through TRANS 1 and TRANS 2.
* Enter details of interest, if payable, in Section 5.1. Late fee will be computed by the system
* Click on Save GSTR-3B button. After you save the data, Submit button will get enabled. Please note that after submit, no modification is possible. Hence ensure that details are filled correctly before clicking on Submit button.
* On clicking Submit GSTR-3B button, System will post (debit) the self-assessed liabilities including system generated late fee in Liability Register and credit the claimed ITC into ITC ledger.
* After this the Payment of Tax tile will be enabled, please click it and declare your payment details to pay the taxes and offset the liability.
* Click CHECK BALANCE button to view the bala
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liability; SGST credit has to be first used for paying SGST liability and then IGST liability; CGST Credit has to be first used for CGST liability and the remaining for IGST Liability; SGST credit cannot be used for paying CGST liability and CGST credit cannot be used for paying SGST liability
* Transition ITC, if available in ITC ledger, can be used for payment of liabilities of GSTR 3B
* Click the OFFSET LIABILITY button to pay off the liabilities
* Click on declaration statement
* Select Authorized Signatory filing the Form
* Click on File GSTR-3B button with DSC or EVC
* Message for successful filing will appear and Acknowledgement will get generated
The author is a practising CA and is registered Insolvency Professional. He can be reached at cavinodchaurasia@gmail.com , Mob. +91 9953587496.
Reply By KASTURI SETHI as =
Dear Chaurasia Ji,
Excellent and timely article. A great services to the assessees.
Dated: 19-8-2017
Reply By NARENDRA SEKSARIA as =
DEAR VINOD
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All you should know while filing GSTR – 3B Return
By: – Ravi Kumar Somani
Goods and Services Tax – GST
Dated:- 18-8-2017
Filing of GSTR-3B return is the first formal communication of business transactions with the government machinery in the GST era. It holds lot of importance especially in the current scenario where many businesses are still struggling with the basics of this new law i.e. obtaining provisional id's, issues in logins, interpretation issues in law, dealing with the procedural aspects and many more… The list can just go on. Amidst all these barriers, the show has to still go on and one has to act upon the mandate of the law and file an error free GSTR 3B return. Since, there is lot of confusion among industry and trade on this filing requirement of form GSTR-3B, therefore this article is written to provide conceptual clarity on filing of this form along with data requirement and calculation mechanics for detailed field wise submission in this form.
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ely in its field wise requirement, we would first take a look at few important points in this regard:
* GSTR 3B needs to be separately filed for each GST registration number.
* It needs to be filed online only in the common portal i.e. www.gst.gov.in, there is no any offline utility provided which can be filled and uploaded into the system. In the post login mode, one can access it by going to Services > Returns > Returns Dashboard. After selecting the financial year and tax period, GSTR 3B, (if applicable), in the given period will be displayed.
* It is needed to be filed even if it is a nil return.
* Once filed, the form shall be final and there is no provision for revision of the return once filed. Any revision has to be done through while filing of GSTR -1, GSTR -2, GSTR -3.
* Upon generation of GSTR 3, if actual liabilities are different from those declared in GSTR 3B, the system will update the delta (difference) between GSTR 3B and GSTR 3 automatically. In case of an
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rterly return only.
* If there is any tax payable then payment of such tax is mandatory for filing of form GSTR-3B. In other words, GSTR-3B return cannot be filed without full payment of the tax due.
Having understood the basics and the requirement of the form, we shall now understand the form in detail with field-wise reporting requirement along with how data/ information must be identified, computed and assimilated by the business to ensure error free filing of this form. Below is the format of the form for quick glance.
Field No. 3.1 – Details of Outward Supplies and inward supplies liable to reverse charge
A) Outward taxable supplies (other than zero rated, nil rated and exempted supplies)
Details of all the taxable outward supplies must be entered here. Therefore, details of zero rated supply, nil rated supply and exempted supply must be excluded. By entering the details here we would be able to calculate the total GST payable on outward supplies. Once we arrive at the value
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nd not shown separately.
In case of services, if advance is received before July 17 but invoice is issued in the month of July 17, then the transaction shall be liable for service tax to the extent of advances received before July 17 and detail of such invoice to the extent of liability under service tax law should not be included here.
Details of invoices raised for stock transfer of goods or cross billing for services to the another registered person of the same entity must be entered here. In other words, it shall contain the details of internal as well as external invoicing.
If both taxable and exempted goods or services are covered in the same invoice then only details of the taxable portion of such invoice must be entered here. The exempted portion must be separated and entered below in field (c) even though the same are covered under same invoice number.
As the heading clearly states only details of the outward supplies must be entered here. Therefore, if any tax is payable
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e upon payment of tax by availing full credit or the same can also be made without payment of tax by filing bond or LUT. Both the categories of zero rated supplies must be mentioned here only. Calculation of tax payable on Zero rated supplies must be done in the same manner as provided in (A) above. Tax columns would be filled when the assessee is opted to pay GST for making exports/SEZ supplies.
A supply which is both Nil rated and also Zero rated, then details of such supplies must be mentioned in the category of zero rated supply. For ex: Export of books would be a zero rated and also nil rated supply. Details of this supply must be entered in zero rated supply as in such a case assessee would still be able to claim the refund of the input taxes credit. Putting the details in Nil rated supply may lead to unnecessary consequences from the department and denial of credit thereon.
C) Other outward supplies (Nil rated, exempted):
Nil rated supplies are the ones where although the sup
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harge: For example: In case of services of hotel, inn, accommodation, passenger transport by cab etc are supplied through an electronic commerce operator, then such electronic commerce operator shall be liable for GST.
Liability of GST payable under reverse charge must be calculated as under:
Identify the purchases made from unregistered persons to determine the reverse charge liability
* Segregating the above purchases into inter-state and intra state supplies;
* Remove the intra-state purchases of a state where there is no registration obtained;
* Remove the intra-state or inter-state purchases which are not exempted or are nil rated for ex: Purchase of milk, books etc.;
* Remove the intra-state or inter-state purchases which are not leviable to GST For ex: Petrol, diesel, electricity etc.;
* Remove the intra-state or inter-state purchases which are purchased from a person who is not in any business i.e. not being a supplier.
* Segregate the intra state purchases porti
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te: Merely because a person is not charging any GST on the bill need not be assumed that the said person is an unregistered person in the GST. For example: food bills from restaurants. There is a possibility that such restaurant is registered under the composition scheme of the act. Therefore, while identifying vendors under reverse charge a precaution to that extent must be taken.
In earlier tax regime, service tax was payable under reverse charge only when payment was made to the vendor. In case of GST, tax under reverse charge needs to be paid at earliest of the following dates:
* Receipt of goods/ from vendor;
* Payment entry in books of accounts or debit in bank; or
* Date immediately following 30 days (60 days in case of services) from the date of issue of invoice by the vendor.
Therefore, if any of the above event has taken place, then assessee needs to pay GST under reverse charge. For ex: If a payment is made to an advocate in the month of July 2017, then reverse charg
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goods/ services and proper tax needs to be calculated.
E) Non-GST outward supplies:
Certain supplies are treated as non-GST supplies meaning thereby they are neither exempt or nil rated or zero rated. Various supplies that would get covered here are as under:
* Sale of flats after issuance of the completion certificate;
* Sale of land;
* Provision of electricity;
* Sale of Petrol and petroleum products;
* Sale of alcoholic liquor for human consumption;
* Dealings in securities and transactions in money;
* Actionable claims, other than lottery, betting and gambling.
In case any of the above category of supplies are made then details of the same must be reflected in this field.
Field No. 3.2: Details of inter-State supplies made to unregistered persons, composition taxable persons and UIN holders
Details of following supplies must be disclosed in this field:
* Inter-state supplies made to unregistered persons;
* Inter-state supplies made to composition taxable per
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ported in field 3.2. Although, details of these supplies must have already been covered and disclosed in field no. 3.1 above, but the same are also required to be reported here. However, this would not mean payment of tax twice on these supplies. Missing out few cases in this table would not be an offence as it is merely a disclosure part and no transactions being escaped from tax net.
Field No. 4: Details of eligible Input Tax Credit
Amount of inward supply not to be furnished. Only the amount of tax paid on inward supplies, whether creditable or not, is required to be furnished here. These should be net off credit and debit notes.
Firstly, details of all inward supplies in the month of July 2017 on which vendors have charged GST must be identified.
Add: Tax payable under reverse charge for which credit is provisionally available in the month of July 2017 itself.
Add: Supplies on which credit is distributed by other unit by way of ISD;
Less: Above input tax credit must be propor
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e, VAT, service tax etc. However, a relief in this regard is expected and government may enable availing of the closing credits of old taxes even though the transition forms are not filed. However, no such notification is issued in this regard as on 16.08.2017.
Field No. 5: Details of exempt, nil-rated and non-GST inward supplies
Apart from the details of inward supplies on which credit is taken, details of inward supplies on which no GST is charged by vendors must also be submitted. Such supplies can be categorized as under:
Exempt/ Nil rated inward supplies: In case of supplies on which vendor has not charged any GST as the said supply is exempt or is nil rated. For example purchase of books, milk etc.
Non-GST outward supplies: Certain supplies are treated as non-GST supplies meaning thereby they are neither exempt or nil rated or zero rated.
This is the most toughest aspect in the entire preparation process of Form GSTR 3B since even the smallest of the inward supply details ne
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/Online banking modes).
* Input tax credit of IGST shall first be utilised towards payment of IGST and the amount remaining, if any, may be utilised towards the payment of CGST and SGST, or as the case may be, UTGST, in that order;
* Input tax credit of CGST shall first be utilised towards payment of CGST and the amount remaining, if any, may be utilised towards the payment of IGST;
* Input tax credit of SGST shall first be utilised towards payment of SGST and the amount remaining, if any, may be utilised towards payment of IGST;
* Input tax credit of UTGST shall first be utilised towards payment of UTGST and the amount remaining, if any, may be utilised towards payment of IGST;
* CGST shall not be utilised towards payment of SGST or UTGST; and
* SGST or UTGST shall not be utilised towards payment of CGST.
* Interest, penalty, fee or any other amount payable under this Act or the rules made thereunder shall be paid in cash and not by utilizing Input tax credit.
* Input
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aring the payable sheet is discharged.
TDS and TCS Credit:
The provisions relating to TDS and TCS has not made effective and hence no details would appear under the above head.
Conclusion:
Businesses must ensure thorough verification of the transactions and its applicability to GST before making the payment of tax and filing of GSTR 3B return as any incorrect payment of taxes have larger consequences in the GST regime. Since, the law is nascent and the interpretations are developing, therefore principles would take its own time to get settled. Until then one has to be more vigilant and take due care to avoid erroneous application of the law and disputes arising thereon.
–
* CA Ravi Kumar Somani
* CA Nagendra Hegde
(Article written on 16th August 2017. For any feedback or queries write to ravikumar@hiregange.com or nagendra@hiregange.com )
Reply By Mohammed Lakkadsha as =
Dear Expert , In my humble opinion the Applicability of GST on services Provided in Jun-2017 for which
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EXPORT/SEZ PROCEDURES (BOND/LUT OR REFUND ROUTE) – Part-II
By: – CASanjay Kumawat
Goods and Services Tax – GST
Dated:- 18-8-2017
I am posting this article in continuation to my earlier article on 'ZERO RATED SUPPLY WITH EXPORT PROCEDURES (BOND/LUT OR REFUND ROUTE)- Part- I'.
The Central Government vide Circular No. 5/5/2017 – GST dated 11th August 2017 has clarified issues related to the furnishing of Bond/Letter of Undertaking for Exports.
A large number of communications have been received from the field formations and exporters citing variation in the interpretation of Notification No. 16/2017 – GST dated 7th July 2017 and Circular No. 2/2/2017 – GST dated 5th July 2017 and Circular No. 4/4/2017 – GST dated 7th July 2017.
Therefore, in exercise of powers conferred under section 168 (1) of the Central Goods and Services Tax Act, 2017, for the purpose of uniformity in the implementation of the Act, following issues are being clarified hereunder:
Que. 1 Who
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a higher amount, in the previous financial year.
A few illustrative cases are as follows:
· Case 1 :
An exporter had a turnover of ₹ 15 crore in the previous financial year. He would be eligible for LUT facility if remittance received against this export is ₹ 1.5 crore or more (10% of export turnover is more than ₹ 1 crore)
· Case 2 :
An exporter had a turnover of ₹ 5 crore in the previous financial year. He would be eligible for LUT facility if remittance received against this export is ₹ 1.0 crore or more (10% of export turnover is less than ₹ 1 crore)
· Case 3 :
An exporter has an export turnover of ₹ 2 crore. He has received ₹ 80 lacs as foreign inward remittances in FY 2016-17 which is 40% of the export turnover. He will not be eligible for LUT facility as remittance received is less than ₹ 1 crore.
· Case 4 :
An exporter has export turnover of ₹ 40 crore. He has received ₹ 2 Cro
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ut also provide guidance and handholding to new entrepreneurs.
b) All exporters of goods, services and technology having an import-export code (IEC) number shall be eligible for recognition as a status holder. Status recognition depends upon export performance. An applicant shall be categorized as status holder upon achieving export performance during current and previous two financial years, as indicated in paragraph 3.21 of Foreign Trade Policy. The export performance will be counted on the basis of FOB value of export earnings in free foreign exchange.
c) For deemed export, FOR value of exports in Indian Rupees shall be converted in US$ at the exchange rate notified by CBEC, as applicable on 1st April of each Financial Year.
d) For granting status, export performance is necessary in at least two out of three years.
3.21 Status Category
Status Category: Export Performance FOB / FOR (as converted) Value (in US $ million)
· One Star Export House : 3 $
· Two Star Ex
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arlier used for purchase of goods by a merchant exporter from a manufacturer without payment of central excise duty. The scheme holds no relevance under GST since transaction between a manufacturer and a merchant exporter is in the nature of supply and the same has not been exempted under GST even on submission of LUT/bond. Therefore, such supplies would be subject to GST. The zero rating of exports, including supplies to SEZ, is allowed only with respect to supply by the actual exporter under LUT/bond or payment of IGST.
Que. 5 What is the GST impact on transactions with EOUs ?
Clarification: Zero rating is not applicable to supplies to EOUs and there is no special dispensation for them. Therefore, supplies to EOUs are taxable under GST just like any other taxable supplies. The EOUs, to the extent of exports, are eligible for zero rating like any other exporter.
Que. 6 What is the treatment of forward inward remittance in Indian Rupee under GST regime?
Clarification: Various repre
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g Union (ACU) or Nepal or Bhutan”.
Accordingly, it is clarified that acceptance of LUT instead of a bond for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange as long as they are in accordance with applicable RBI guidelines. It may also be noted that supply of services to SEZ developer or SEZ unit will also be permissible on the same lines. The supply of services, however, to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange.
Que. 7 What are the different requirements of furnishing bank guarantee under GST regime for export ?
Clarification: Circular No. 4/4/2017 dated 7th July, 2017 provides that bank guarantee should normally not exceed 15% of the bond amount. However, the Commissioner may waive off the requirement to furnish bank guarantee taking i
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e same PAN. But the total amount of inward foreign remittances received by all the registered persons, having one Permanent Account Number, maybe ₹ 1 crore or more and it also maybe 10% or more of total export turnover. In such cases, the registered person can be allowed to submit bond without bank guarantee.
Que. 8 Who will be the Jurisdictional officer for submission of LUT/Bond?
Clarification : It has been clarified in Circular Nos. 2/2/2017 – GST dated 4th July, 2017 and 4/4/2017 – GST dated 7th July, 2017 that Bond/LUT shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented. It is reiterated that the Central Tax officers shall facilitate all exporters whether or not the exporter was regi
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LOCAL SALE V. INTER-STATE SALE
By: – DR.MARIAPPAN GOVINDARAJAN
Goods and Services Tax – GST
Dated:- 18-8-2017
The sale may be effected within the State or in between two or more States. The 'local sale' is nothing but the intra-State sales. When the sale is between two or more States the same is called as inter-State Sales. In general, sale where seller and buyer both are from same state is called as intra state sale for example “seller of Kanpur (U.P.) sells goods to a dealer of Noida (U.P.)” but when buyer and seller are in different States, it is Inter-state sales. For example a seller of Chennai (Tamil Nadu) sells goods to dealer based at Allahabad (U.P.) however location of seller and buyer is immaterial and both can be located in same State but goods should be moved from one State to another.
Section 3 of Central Sales Tax Act, 1956 discusses when is a sale or purchase of goods said to take place in the course of inter-State trade or commerce. According to this s
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IA, the Supreme Court held that a sale can be said to be in the course of inter-state only if two conditions concur viz. (i) sale of goods and (ii) a transport of those goods from one State to another. Thus transaction must be a completed sale. Location of buyer and seller is immaterial. Thus, even if buyer and seller are within the same State, sale will be inter-State, if sale occasions movement of goods from one State to another. E.g., the buyer may have construction site in another State and may ask seller to dispatch goods directly to the site.
In 'Commissioner of Commercial Taxes, Hyderabad V. Desai Beedi Company' – 2015 (3) TMI 786 – SUPREME COURT the Supreme Court held that in order to constitute an 'inter-state sale' the movement of goods should be occasioned by the sale and that the same must be inextricably connected with the sale. The assessee was engaged in the manufacture of 'beedi' and was having factory and head office in Maharashtra, with a registered branch office in
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the seller and movement of goods from the State of Andhra Pradesh to another State were not inextricably connected, but independent of each other and hence it was never an instance of 'interstate sale'.
The Madras High Court had an occasion to consider whether the sale of sandal wood in an auction effected in the State of Tamil Nadu and the movement of the goods to another State at the instance of the successful bidder, who was having the place of business in the latter State, would constitute an inter-state sale and whether the demand of payment of tax under the Tamil Nadu VAT Act was justified or not. The Madras High Court in 'Karnataka Soaps and Detergents Limited V. District Forest Officer, Sathyamangalam and others' – 2005 (2) TMI 786 – MADRAS HIGH COURT held that the terms of the tender-cum-auction sale notification covered all the registered sandal wood contractors of Salem Division and that there was no differentiation as 'local buyer' and 'interstate buyer'. The terms of the
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. However she sought for exemption from tax since her establishment was situated in a Special Economic Zone. The request was turned down by the Authority, considering it as a 'local sale'. She approached the High Court by filing a writ petition. The High Court granted liberty to the appellant to approach the Divisional Forest Officer, Marayoor, Idukki District by filing Form I under CST Act, seeking exemption. The application of the appellant was rejected by the Authority. Therefore she again approached the High Court. The High Court held the tender form stipulated that the successful bidder had to satisfy the entire due amount including the tax under KVAT Act. At no point of time the appellant stated that the offer was subject to exemption to pay any tax under KVAT Act or the goods were being purchased in the course of export through the unit in a SEZ situated in another State and that no tax under the local statute would be payable. The appellant participated in the tender without ra
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e supply-
* supply of goods to or by a SEZ developer or a SEZ Unit;
* goods imported into the territory of India till they cross the customs frontiers of India; or
* supplies made to a tourist referred to in section 15;
Section 8(2) provides that subject to the provisions of Section 12, supply of services, where the location of the supplier and the place of supply of services are in the same State or same Union territory shall be treated as intra-State supply. The intra-State supply of services shall not include supply of services to or by a SEZ developer or a SEZ Unit. The explanation 1 to this section provides that where a person has-
* an establishment in India and any other establishment outside India;
* an establishment in a State or Union territory andany other establishment outside that State or Union territory; or
* an establishment in a State or Union territory and any other establishment being a business vertical registered within that State or Union territory,
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GST CONCERNS OF AUTOMOBILE DEALERS
By: – Dr. Sanjiv Agarwal
Goods and Services Tax – GST
Dated:- 18-8-2017
Goods and Services Tax (GST) in now a reality and then most of the present indirect taxes on goods and services shall become history making GST indeed historic. The launch ceremony at Parliament House has rewritten a new destiny, this time an economic one. GST, though has been claimed as one of the biggest tax reforms ever, it is also being seen as one of the most challenging times for automobile sector. Here is an attempt to flag certain areas of concerns for automobile industry and automobile dealers which are indeed grey, both in colour as well as in understanding and interpretation.
Closing Stock of Vehicles / Spa
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book losses.
Demo Cars / Vehicles
Demo cars are used for marketing and training as a usual business practice which are presently not considered as capital goods. There are two divergent views on the same in view of specific denial of credit to motor vehicles in input tax credit provisions.
Discounts on Vehicles
Giving discounts to buyers of vehicles by dealers in different forms is very common. It could be via invoice or otherwise. Dealers also get discounts from the manufacturers of vehicles in the nature of quantity or trade discount / incentive. Their tax treatment and documentation would be crucial to avoid interpretational disputes with the Department.
Marketing Strategies and Freebies
At present auto dealers offer incentives
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r.
Composite Contracts of Sale and Service
Vehicles are generally subject to repair and maintenance which will involve supply of consumables as well as spare parts. Rates of both goods as well as services would be different, i.e., 28 or 18%. The problem of treating a transaction as a mixed or composite supply is a technical issue wherein interpretation may be divergent and would lead to disputes.
Heavy Taxes on pre-owned Vehicles
Dealing in second hand goods (pre-owned vehicles) is a substantial part of dealer's business. There is no concessional rate of tax prescribed looking to the fact that such goods would have suffered tax already at the time of first purchase.
Advance Booking of Vehicles
Vehicles booking by paying advance m
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Seeks to amend Notification No. SRO-GST 1 dated the 8th July, 2017
SRO-GST-1 (Rate) Dated:- 18-8-2017 Jammu and Kashmir SGST
GST – States
Jammu and Kashmir SGST
Jammu & Kashmir SGST
Government of Jammu and Kashmir
Finance Department
Notification
Srinagar, the 18th of August, 2017
SRO-GST-1 (Rate).- In exercise of the powers conferred by sub-section (1) of section 9 of the Jammu and Kashmir Goods and Services Tax Act, 2017, the Government, on the recommendations of the Council, hereby makes the following amendment in Notification SRO-GST 1 dated the 8th July, 2017, namely:-
In the said notification, in Schedule III – 9%, after serial number 452 and the entries relating thereto, the following serial number and entries shal
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