Audits Continue for 2016-17 and Earlier Periods Amid GST Transition to Ensure Consistent Oversight and Compliance.
Circulars
GST
Strategy for audits in 2017-18 consequent to GST – Audit by Ce
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Reply to the notice to show cause
GST CMP – 06
GST
Form GST CMP – 06
[See rule 6(5)]
Reply to the notice to show cause
1.
GSTIN
2.
Details of the show cause notice
Reference no.
Date
3.
Legal name
4.
Trade name, if any
5.
Address of the Principal Place of Business
6.
Reply to the notice
7.
List of documents uploaded
8.
Verification
I ________________________________ hereby solemnly affirm and declare that the information given herein above is true and correct to the
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Notice for denial of option to pay tax under section 10
GST CMP – 05
GST
Form GST CMP- 05
[See rule 6(4)]
Reference No. << … >> << Date >>
To
GSTIN
Name
Address
Notice for denial of option to pay tax under section 10
Whereas on the basis of information which has come to my notice, it appears that you have violated the conditions and restrictions necessary for availing of the composition scheme under section 10 of the Act. I therefore propose to deny the option to you to p
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Intimation/Application for Withdrawal from Composition Levy
GST CMP – 04
GST
Form GST – CMP-04
[See rule 6(2) ]
Intimation/Application for Withdrawal from Composition Levy
1. GSTIN
2. Legal name
3. Trade name, if any
4.Address of Principal Place of business
5. Category of Registered Person
(iv) Manufacturers, other than manufacturers of such goods as may be notified by the Government
(v) Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II
(vi) Any
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Government constitutes a GST Feedback and Action Room (FAR) w.e.f. 26-06-2017 to review the information, calls, media inputs etc received from Ministries, State Governments, field formations, social media, news channels, emails etc
GST
Dated:- 21-7-2017
To reply the queries of the taxpayers and tax officials and to deal with issues related to the implementation of Goods and Services Tax Network (GSTN), Government has constituted a GST Feedback and Action Room (FAR) w.e.f. 26-06-2017. Main purpose of FAR is reviewing the information, calls, media inputs etc received from Ministries, State Governments, field formations, social media, news channels, emails etc.
A team of officers monitor various media viz., newspapers, news cha
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Number of Registration of GSTN crosses 77.5 lakhs
GST
Dated:- 21-7-2017
Till 18th July 2017, the total number of GSTIN registrations is 77,55,416.
No major problems have been reported post Goods and Services Tax (GST) from the field offices across the country
Internet is not required for doing / conducting business. It would be required only for the purpose of filing of returns under GST. The Government has ensured that the return filing process is made convenient for all taxpaye
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Government has constituted a Central Monitoring Committee headed by the Cabinet Secretary to monitor the impact of GST
GST
Dated:- 21-7-2017
The Government of India has setup a Central Monitoring Committee headed by the Cabinet Secretary.
Three meetings of the Central Monitoring Committee have been held on 2nd July, 11th July and 18th July. The reports include the details of feedback received from various Ministries and Departments regarding the following issues:
* Steps taken by department to disseminate knowledge about GST.
* Stakeholders still not registered.
* Position of Prices of Products pre-GST and post-GST.
* Queries received, solved by GST Cell in every department.
* Department wise FAQs made, disseminated
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information received from Ministries, State governments, field formations and social media, newspapers, news channels, e-mail, etc. and report it on Real Time basis to the Revenue Secretary, CBEC, GSTN and other concerned authorities. A team of officers monitor various media reports for any GST related news/issues and also take further necessary action. FAR has multi-line telephone numbers which are available in the control room and these numbers have been informed to the Central and State GST officers. The emails received from the Ministries, State Governments and field formations are forwarded to the respective sections for information and feedback purpose.
The immediate and long term benefits of GST are as under:
* Transparency and a
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GST Tax Invoice Clarification required
Query (Issue) Started By: – RameshBabu Kari Dated:- 21-7-2017 Last Reply Date:- 23-7-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Dear Experts,
Service provider(from Telangana) issuing the invoice to Service recipient(also from Telangana) for the part services rendered in Telangana and rest of the Service rendered in Andrra Pradesh. But Service recipient is GST registered only from Telangana State and doesn't registered in Andhra Pr
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Intimation of details of stock on date of opting for composition levy
GST CMP – 03
GST
Form GST -CMP-03
[See rule 3(4)]
Intimation of details of stock on date of opting for composition levy
(Only for persons registered under the existing law migrating on the appointed day)
1. GSTIN
2. Legal name
3. Trade name, if any
4. Address of Principal Place of Business
5. Details of application filed to pay tax under section 10
(i) Application reference number
(ARN)
(ii) Date of filing
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Intimation to pay tax under section 10 (composition levy)
GST CMP – 02
GST
Form GST CMP -02
1[See rule 3(3) and 3(3A)]
Intimation to pay tax under section 10 (composition levy)
(For persons registered under the Act)
1. GSTIN
2. Legal name
3. Trade name, if any
4. Address of Principal Place of Business
5. Category of Registered Person < Select from drop down>.
(i) Manufacturers, other than manufacturers of such goods as may be notified by the Government
(ii) Suppliers making su
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Intimation to pay tax under section 10 (composition levy)
GST CMP – 01
GST
Form GST CMP -01
[See rule 3(1)]
Intimation to pay tax under section 10 (composition levy)
(Only for persons registered under the existing law migrating on the appointed day)
1. GSTIN / Provisional ID
2. Legal name
3. Trade name, if any
4. Address of Principal Place of Business
5. Category of Registered Person < Select from drop down>
(i) Manufacturers, other than manufacturers of such goods as notified
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gst rate for garment job work 5 % or 18%
Query (Issue) Started By: – satbir singh wahi Dated:- 21-7-2017 Last Reply Date:- 25-7-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Kindly guide the GST rates for following Job work relates to Yarn and Fabric for garment manufacturing.Whether 5% or 18%.
Group 99882
Textile, wearing apparel and leather manufacturing services
998821
Textile manufacturing services
998822
Wearing apparel manufacturing services
Reply By satbir si
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GST on Seeds
Query (Issue) Started By: – Siddharaj Deora Dated:- 21-7-2017 Last Reply Date:- 26-7-2017 Goods and Services Tax – GST
Got 3 Replies
GST
Are seeds (of Cereals, Pulses, Oil Seeds) sold to farmers for sowing by the STATE SEEDS CORPORATION under their registered brand name liable for GST? Which HSN codes will be applicable? Do they fall under Chapter 10 or 12?
Also Chapter 10 is for Cereals – both branded and unbranded. Than what about Pulses? Which Chapter does it fall?
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untilised input credit under GST
Query (Issue) Started By: – N Balachandran Dated:- 21-7-2017 Last Reply Date:- 23-7-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Sir,
Can u please clarify the following in respect of unutilised Credit :
1. we are manufacture of Wind Mills. Wind mill will attract GST @ 5% but when purchase the components, cables and panel etc the rate of GST @ 18% or @28% is applicable . if so, can we claim refund of Excess unutilised credit?
2. When we undertake construction work, We discharge the GST @ 18%. Now my question is, the project is executed under loss and the situation arises the Excess credit available at the end of the project. if so, can we claim refund the unadjusted Credit or the same c
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available at the end of the project. if so, can we claim refund the unadjusted Credit or the same can be adjusted against out put tax payable on some other contract?
Credit ledger is summary of total cerdit available to you for the payment of output tax.so you can adjusted for the other contract. subject GSTN wise not one state to other state.
Reply By Kishan Barai:
The Reply:
If you pay Excess GST on raw materials & receive less GST in sales then you can not get refund of excess GST paid, simply Excess GST paid would turn into your more Cost of production
Reply By Ganeshan Kalyani:
The Reply:
Refund is allowed for inverted duty structure i.e. the tax paid on input is more than the the tax payable on output GST. Further to avail credi
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Additional Place of Business.
Query (Issue) Started By: – SHIVKUMAR SHARMA Dated:- 21-7-2017 Last Reply Date:- 24-7-2017 Goods and Services Tax – GST
Got 5 Replies
GST
Dear Experts
Please note that we have mfg.unit at near by Bharuch in Gujarat & having additional place of Business(From where we sold the goods in retail) at Bharuch -Gujarat having same GST Number.Please confirm the following.
1 .While Despatch of goods from our Manufacturing unit nearby Bharuch to our additional place of busines at Bharuch what document we have to prepared, Tax Invoice or stock Transfer Challan.
2.If Prepared Tax Invoice Than we can take the ITC at additional place of business.
Presently we are preparing challan mentioning stock transfer &
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GST on Wind mills and its parts -reg
Query (Issue) Started By: – N Balachandran Dated:- 21-7-2017 Last Reply Date:- 23-7-2017 Goods and Services Tax – GST
Got 1 Reply
GST
Sir,
1. Can u please clarify the GST rate applicable on parts and procured for Wind Mills ( Wind Electric generator ) Renewable energy device.
2. We are manufacturer of wind mills and the GST is applicable on Wind Mill is 5%. When we undertake supply and erection including civil works , DP yard etc., What will be rate of GST on the whole?
3. What is the GST rate if we undertake civil work including land?
Regards
N.Balachandran
Reply By vk agarwal:
The Reply:
My comments are as follows:
1. Parts , which are designed for use solely with wind mills and ar
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GST – Sectoral FAQs – MSME
GST
Dated:- 21-7-2017
Question 1: What is GST?
Answer: GST stands for Goods and Services Tax, which is levied on supply of goods or services. “Supply” is a legal term which has very broad sweep and various types of economic activities are covered by it. For example, sale of goods is a type of supply.
Question 2: On what supply is GST levied?
Answer: GST is levied on all types of supplies which are – (i) made for a consideration and (ii) are for the purpose of furtherance of business. There are some exceptions when these conditions are not met, yet supply is considered to have been made, for example, interstate stock transfer of goods even without consideration or importation of services even if not in the furtherance of business.
Question 3: Will GST be levied on all goods or services or both?
Answer: No, GST will not be levied on alcohol for human consumption. GST on Crude, Motor Spirit (Petrol), High Speed Diesel, Aviation Turbine Fuel
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e as well as State for various permissions, audit etc. under the Act?
Answer: No, a registered person will have to approach only one tax authority for all practical purposes. Each registered person would have one tax administration office, either of the Centre or of the State. Legal provisions (called crossempowerment) have been made to ensure that one officer can discharge all functions under CGST, SGST and IGST Act. The registered person would be informed of the tax administration concerned with him. A single registration is granted for the purposes of CGST, SGST/UTGST and IGST.
Question 6: What is destination based consumption tax?
Answer: When a supply originates in one State and is consumed in another State, tax can accrue to either of the two States. In a destination based consumption tax, taxes accrue to the State where the supply is consumed. In origin based tax, the tax accrues to the State where the supply originates. GST is basically a destination based consumption tax. F
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x due from him on further supply made by him). This is known as input tax credit for the recipient.
Question 9: Is GST going to increase compliance burden on the trade?
Answer: No. On the contrary GST will result in streamlining of processes and reduction of compliance burden. GST is a simple tax which uniformly applies across the country. GST has been designed to have minimal human interface and would be implemented through strong IT platform run by GSTN. Also, in the earlier regime there were multiple compliances required for taxes such as Central Excise, Service tax, VAT etc. with Centre and State. GST makes it single and uniform compliance for indirect taxes across the country. Under GST, there is just one interface with no face-to-face meeting between taxpayers and tax authorities and practically every activity will be done online.
Question 10: What is the threshold for registration in GST?
Answer: A person having business which has aggregate turnover of more than ₹ 20 l
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pt from GST. Am I liable for registration?
Answer: No.
Question 14: How do I make supply, if I have not applied for registration?
Answer: You should apply for registration at the earliest on the GST common portal and obtain application reference number (ARN). You need not disrupt your business and may continue to make supplies on invoices without GSTIN. The application for registration must be made within 30 days of the turnover crossing ₹ 20 lakhs or attracting any of the conditions mentioned in section 24 of the CGST Act, 2017. After registration, you can issue revised invoices as permitted under section 31(3)(a) of the said Act. These supplies should be shown in the return and taxes paid on them.
Question 15: How can an application for fresh registration be made under GST? Within what time will registration be granted?
Answer: Application for fresh registration is to be made electronically on the GST common portal (www.gst.gov.in) in FORM GST REG-01. If the details and do
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am a SME selling printed books after printing and have a turnover of twenty-five lakhs rupees per annum. I print only Children's picture, drawing or colouring books which are exempt from GST. Do I need to register?
Answer: No. A person dealing with only exempted supplies is not liable to registration irrespective of his turnover. Section 23(1)(a) of the CGST Act, 2017 refers.
Question 19: If I register voluntarily though my turnover is less than ₹ 20 lakhs, am I required to pay tax on supplies made post registration?
Answer: Yes. If you obtain voluntary registration despite the turnover being below ₹ 20 lakhs, you would be treated as a normal taxable person and would need to pay tax on supplies even if they are below the threshold for registration. You will also be entitled to take input tax credit.
Question 20: How will taxpayer get the certificate of registration?
Answer: The taxpayer can himself download the certificate of registration online from the GST common por
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uired to be obtained.
Question 23: Are all manufacturers necessarily required to be registered under GST?
Answer: No, there is no provision requiring that a manufacturer irrespective of threshold or nature of supply to register himself under GST. For example, a manufacturer dealing only in exempted goods or where his turnover is only intra-State and below ₹ 20 lakhs, is not required to be registered.
Question 24: Who is liable to issue a 'tax invoice' and how many copies are required to be issued?
Answer: Every registered person (other than a registered person availing the benefit of composition or a registered person supplying exempted goods or services) supplying goods or services or both is required to issue 'tax invoice'. Invoice should be issued in triplicate in case of supply of goods. The original copy is meant for buyer, duplicate for transporter and triplicate copy for record of the seller. A registered person under composition scheme or supplying exempted goods or s
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day in respect of all such supplies.
Question 27: When should a tax invoice be issued for goods?
Answer: Tax invoice for goods shall be issued on or before the time of removal/delivery of goods. In case of continuous supply of goods, it shall be issued on or before the time of issue of statement of accounts /receipt of payment.
Question 28: In case of supply of exempt goods or when tax is paid under Composition Scheme, is the registered person required to issue a tax invoice? How a bill of supply is different from a tax invoice?
Answer: No. In such cases, the registered person shall issue a Bill of Supply and not a tax invoice. The bill of supply is different from a tax invoice both in name and details contained. While most of the details to be provided in a bill of supply are similar to tax invoice, the bill of supply does not contain the rate of tax and the amount of tax charged as the same cannot be collected.
Question 29: If goods are transported in semi-knocked down conditio
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limit for Composition Levy for CGST and SGST purpose shall be ₹ 50 lakhs?
Answer: Composition scheme is a scheme for payment of GST available to small taxpayers whose aggregate turnover in the preceding financial year did not cross ₹ 75 Lakhs. In the case of 9 special category States, the limit of turnover is ₹ 50 Lakhs in the preceding financial year, namely – Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura and Himachal Pradesh. However, if you are a manufacturer of ice-cream, pan masala or tobacco or tobacco products or if you are a service provider other than a restaurant, you are not eligible for composition scheme.
Question 32: What is the form in which an intimation to pay tax under the composition scheme needs to be made by the taxable person?
Answer: Composition scheme is optional and intimation that option has been availed should be made electronically in FORM GST CMP-01 by the migrating taxable person. A person who has alr
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3
24
Tobacco and manufactured tobacco substitutes
Question 35: When will a registered person have to pay tax?
Answer: A registered person will have to pay GST on monthly basis on or before 20th of the succeeding month and if he has opted for composition levy he will have to pay GST on a quarterly basis on or before the 18th day of the month after the end of the quarter.
Question 36: A person availing composition scheme during a financial year crosses the turnover of ₹ 75 Lakhs / ₹ 50 Lakhs during the course of the year i.e. say, he crosses the turnover of ₹ 75 Lakhs/Rs. 50 Lakhs in December? Will he be allowed to pay tax under composition scheme for the remainder of the year i.e. till 31st March?
Answer: No. The option to pay tax under composition scheme shall lapse from the day on which his aggregate turnover during the financial year exceeds ₹ 75 Lakhs/ 50 Lakhs. Once he crosses the threshold, he shall file an intimation for withdrawal from the scheme in
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it on his inward supplies?
Answer: No, a taxable person opting to pay tax under the composition scheme is out of the credit chain. He cannot take input tax credit on the supplies received.
Question 39: How is a manufacturer under the composition scheme required to bill his supply? Can a registered person, who purchases goods from a composition manufacturer take input tax credit?
Answer: A manufacturer opting to pay tax under the composition scheme cannot issue a tax invoice to his buyer but would issue a Bill of Supply. He cannot collect any tax supplies made by him on his Bill of Supply and is required to show only the price charged for the supply. Consequently, the registered person buying goods from a composition manufacturer cannot take input tax credit.
Question 40: How would a manufacturer under the composition scheme who receives inputs or input services from an unregistered person pay GST? What will be the tax rate if the purchase is from a person availing composition?
Ans
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with respective effective dates as shown below:
Situation
Effective date of composition levy
Persons who have been granted provisional registration and who opt for composition levy (Intimation is filed under Rule 3(1) in FORM GST CMP-01)
1st July, 2017.
Persons opting for composition levy at the time of making application for new registration in the same registration application itself (The intimation under Rule 3(2) in FORM GST REG-01)
Effective date of registration; Intimation shall be considered only after the grant of registration and his option to pay tax under composition scheme shall be effective from the effective date of registration.
Persons opting for composition levy after obtaining registration (The intimation is filed under Rule 3(3) in FORM GST CMP-02
The beginning of the next financial year.
Question 43: What is the validity of composition levy?
Answer: The option exercised by a registered person to pay tax under the composition scheme shall remain valid so l
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n levy, withdraw voluntarily from the scheme?
Answer: Yes, the registered person who intends to withdraw from the composition scheme can file a duly signed or verified application in FORM GST CMP-04. In case he wants to claim input tax credit on the stock of inputs and inputs contained in semi-finished or finished goods held in stock by him on the date of withdrawal, he is required to furnish a statement in FORM GST ITC-01 containing the details of such stock within a period of thirty days of withdrawal.
Question 46: Will withdrawal intimation in any one place be applicable to all places of business?
Answer: Yes. Any intimation or application for withdrawal in respect of any place of business in any State or Union territory, shall be deemed to be an intimation for withdrawal in respect of all other places of business registered on the same Permanent Account Number.
Question 47: Can a person paying tax under composition scheme make exports or supply goods to SEZ?
Answer: No, becaus
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ard, over the counter of banks, RTGS or NEFT.
Question 50: Does a registered person under the composition scheme pay his taxes every month?
Answer: No, registered person under the composition scheme will not pay taxes every month. He would file return and pay taxes on a quarterly basis i.e. for each quarter of the financial year. Due date for payment of tax for them would be on or before the 18th day after the end of such quarter.
Question 51: What are the accounts a manufacturer under the composition scheme needs to maintain?
Answer: Rules on Accounts and Records provide details of the accounts to be maintained. They are maintained under normal course of business by any small manufacturer. The details to be maintained in accounts inter-alia consists of goods supplied, inward supplies attracting reverse charge, invoices, bills of supply, delivery challans, credit notes, debit notes, receipt vouchers, payment vouchers, refund vouchers etc.
Question 52: Does a manufacturer under the
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s, a manufacturer under the composition scheme can maintain his accounts in registers serially numbered and also issue bill of supply manually following the conditions specified in rules in this regard.
Question 55: Whether a registered person under the FAQ: MSME composition scheme needs to learn HSN code of any input purchases and output supplies?
Answer: No, a registered person under the composition scheme would not need to specify HSN code of their products in bill of supply or return.
Question 56:. What return a registered person under the composition scheme needs to file and at what frequency?
Answer: A registered person under the composition scheme of GST is required to furnish quarterly return called GSTR-4 between the 11th day and 18th day of the month succeeding the quarter.
Question 57: What details are required to be furnished in the return to be filed by the registered person under the composition scheme?
Answer: GSTR-4 may be referred for details required to be fille
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GST – Sectoral FAQs – TEXTILES
GST
Dated:- 21-7-2017
Question 1: As per Chapter 53 heading 5303 of the GST rate schedule, raw jute has been kept at the NIL rate slab. Thus, it is presumed that suppliers dealing only in raw jute are not required to register themselves under GST. But Jute Mills are asking their raw jute suppliers to mandatorily register themselves else their supplies would not be accepted. Please clarify whether raw jute suppliers are liable for registration?
Answer: Raw jute has been kept at NIL rate of GST i.e. there would be no tax on raw jute. Therefore, as per Section 23 (1) (a) of the CGST Act, 2017 the suppliers dealing only in raw jute are not required to register.
Jute mills are not required to pay tax under Reverse Charge Mechanism (RCM) as mentioned under Section 9(4) of the CGST Act, 2017 because both the goods have been kept at NIL rate of duty.
Similarly, Raw Silk has also been kept at NIL rate of GST i.e. there would be no tax on raw si
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r those exceeding ₹ 1000/- is 12%. Is this value transaction value or MRP?
Answer: As per the rate schedule, all goods of sale value not exceeding ₹ 1000/- per piece would be taxed at 5% and the goods of sale value exceeding ₹ 1000/- per piece would be taxed at 12%. Therefore, it is the sale value i.e. the transaction value on which the tax has to be paid and not the MRP.
Question 5: No rates have been announced for Jute bags and Jute blended bags. It is feared that they may be placed under Chapter 42 for leather wherein the rate for leather bags is indicated as 28%. It is suggested that the Jute bags may be kept at zero % to promote production of green Jute Diversified products for combating pollution and safe guarding environment?
Answer: The bags made of jute are clearly specified in the rate schedule under heading 4202 22 30. The rates for Hand bags and shopping bags of jute is 18%.
Question 6: Man-made textile yarns have been kept at 18% while fabrics have be
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how would I adjust my taxliability if the entire GST has already been paid?
(b) What would happen to my opening stock on 1st July 2017. Will I get input credit on it or do I just need to supply it after adding 5% GST on it?
(c) Is government assuring of payment within 180 days. There are rumours that the wholesaler/retailer has to pay within 180 days. Is it true?
(d) How will I make my invoices if a buyer under the composition scheme come to buy our sarees?
(e) We are confused about GST implementation as there was no tax on us before. Will we get relaxation for the return filing?
Answer:
(a) You can issue a credit note in respect of the goods returned and adjust your tax liability if the person returning the goods has reversed the credit availed by him at the time of original supply. Such credit note cannot be issued after September of the fol lowing year or filing of annual return whichever is earlier.
(b) Full credit of the tax paid on the stock would be available if the docum
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upplier along with the tax thereon. Thus the government is not assuring payment within 180 days.
(d) A normal invoice has to be issued irrespective of whether the buyer is under composition scheme or not. The difference would be only when you receive supplies from the person registered under the composition scheme.
(e) Relaxation in filing of returns for the month of July and August, 2017 has already been provided as per which for the first two months of GST implementation, the tax would be payable based on a simple return (Form GSTR- 3B) containing summary of outward and inward supplies which will be submitted before 20th of the succeeding month. However, the invoice-wise details in regular GSTR – 1 would have to be filed for the month of July and August, 2017 as per the timelines given below:
Month
GSTR – 3B
GSTR – 1
GSTR-2 (auto populated from GSTR-1)
July, 2017
By 20th August
By 5th Setember
6th – 10th September
August, 2017
By 20th Setember
By 20th Stember
21st – 25t
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er Notification no. 30/2004-CE. But in States we were paying 4% VAT. Also we are doing job work of textile lamination for some customers. Our invoice value is sum total of raw material used for job work, labour charges and profit. Under GST regime:
(a) Whether we will get input credit on material?
(b) How can we make invoice, which rate, or we have to make two different invoice, one for material used for lamination and other for service charges?
Answer:
(a) Yes. You would be eligible for credit of tax paid on material used for job work.
(b) No. You are not required to raise two different invoices. You would be raising one invoice similar one to what you have been doing till now and GST at the applicable rate will be charged on the invoice value. You can pay your tax liability by using Input Tax Credit (ITC). However, invoice should carry all the details as required by the CGST Act, 2017 and the CGST Rules.
Question 11: We are in Furnishing Fabrics Industries for curtain and uphol
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rees when the same is sold by the principal manufacturer?
Answer: The rate of 5% would be chargeable on the job process relating to the textile yarns (other than Man Made Fibre/ Filament) and fabrics. Sarees are treated as fabrics and a saree remains fabrics only as no new item emerges having distinct name, character and use. Stitching of two or more different kinds of fabrics also does not take away its classification. Therefore, the sarees whether embroidered or not would be taxed at the same rate at which the fabric is taxed.
Question 13: Will the 5 % fabric GST be applied or 12% GST of embroidery strips/badges be applied?
Answer: Embroidery strips/ badges (narrow woven fabrics) are classified under heading 5810 and chargeable to tax at 12%.
Question 14: What is the difference between Fabric and Made-ups? Whether Shawl is a fabric or apparel or made-up. What is the rate on Shawls?
Answer: Shawls fall in the category of articles of apparel and clothing accessories and are classi
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Under HSN, the classification of yarn is on predominance basis. So the yarn having predominance of wool would fall under Chapter 51. If all kinds are in equal proportion i.e. no fibre is predominant, it will get classified in the chapter covering the fibre last in the numerical order, so Chapter 54 or 55 in case MMF are present.
Question 17: What would be the GST rate on old cotton dhoti used for cleaning purpose? It is a used product recycled for cleaning purpose. Is there any GST on old dhoti because there is no VAT on old dhoti?
Answer: Dhoti is classifiable under Chapter 52 or Chapter 54 as fabrics. Old dhoti is classifiable under heading 63.09 as worn clothing. The tax for chapter 63 is similar to apparels and related to sale value whereas cotton fabrics/man-made fabrics, irrespective of value, are taxed at 5%. Whatever be the classification, as presumably the old cotton dhoti would be below the sale value of ₹ 1000/- per piece, it would be taxed at 5%.
Question 18: We a
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out of this stock after 1st July, 2017 you will be liable to pay tax as applicable to the goods sold by you.
(b) GST rate on fabric is flat 5% irrespective of composition.
(c) Upto ₹ 1.5 cr turnover, no HSN code is required to be mentioned. For those having turnover of ₹ 1.5 to 5 Cr, first 2 digits of the HSN code are required i.e. the chapter number. Only those who have turnover above ₹ 5 Cr are required to mention 4 digits of the HSN code. You will start getting the HSN code in your supplier's invoice, so it would not cause any issues once the supplies under new regime take place.
(d) ITC would be admissible as per the Transitional provisions of GST Law.
(e) Rate of tax linked to the sale value applies only to garments and not for sarees and suilengths which are fabrics.
Question 19: I am an un-registered trader dealing in textile fabrics which was exempted from tax under the State VAT Act. If I get registered under the GST Act, will I be eligible to avail
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fter the appointed day or 20% of the integrated tax on your inter-State supply of goods after paying central tax/integrated tax on such supply. You are allowed to enjoy the scheme for six months from the appointed day or till such stock is sold out, whichever is earlier, and tax paid by you shall be credited as central tax in your electronic credit ledger.
Question 20: I am a manufacturer of readymade garments. If I send any inputs to the job worker, will it be treated as taxable supply under the GST Act? Can I supply the goods after completion of job work from the place of business of the job worker?
Answer: You can send your inputs or capital goods to a job-worker for job work without payment of tax and also bring back the same, after completion of job work, within one year or three years respectively.
You can also supply the inputs or capital goods from the place of business of the job worke subject to the condition condition that you have to declare the place of business of the
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GST – Sectoral FAQs – EXPORTS
GST
Dated:- 21-7-2017
Question 1: How are exports treated under the GST Law?
Answer: Under the GST Law, export of goods or services has been treated as:
* inter-State supply and covered under the IGST Act.
* 'zero rated supply' i.e. the goods or services exported shall be relieved of GST levied upon them either at the input stage or at the final product stage.
Question 2: What will be the impact of GST on zero rating of export of goods?
Answer: This will make Indian exports competitive in the international market.
Question 3: Have the procedures relating to exports by manufacturer exporters been simplified in GST regime?
Answer: Yes. The procedures relating to export have been simplified so as to do away with the paper work and intervention of the department at various stages of export. The salient features of the scheme of export under GST regime are as follows:
* The goods and services can be exported either on payment of IGST
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ould become irrelevant under the GST regime. The procedure in respect of the supplies made for export is same for both merchant exporter and a manufacturer exporter.
Question 5: The supplies to a SEZ unit or SEZ developer are treated as zero rated supplies in the GST Law. Then why there is no specific mention in the GST Law about not charging of tax in respect of supplies from DTA unit to a SEZ unit or SEZ developer?
Answer: Yes, supplies made to an SEZ unit or a SEZ developer are zero rated. The supplies made to an SEZ unit or a SEZ developer can be made in the same manner as supplies made for export:
* either on payment of IGST under claim of refund;
* or under bond or LUT without payment of any IGST.
Question 6: When a SEZ unit or SEZ developer procures any goods or services from an unregistered supplier, whether the SEZ unit or SEZ developer needs to pay IGST under reverse charge or these will be zero rated supplies?
Answer: Supplies to SEZ unit or SEZ developer have been a
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al to the IGST paid in respect of each shipping bill shall be credited to the bank account of the exporter.
Question 8: Will export of goods to Nepal and Bhutan treated as zero rated and thereby qualify for all the benefits available to zero rated supplies under the GST regime?
Answer: Export of goods to Nepal or Bhutan fulfils the condition of GST Law regarding taking goods out of India. Hence, export of goods to Nepal and Bhutan will be treated as zero orated and consequently will also qualify for all the benefits available to zero rated supplies under the GST regime. However, the definition of 'export of services' in the GST Law requires that the payment for such services should have been received by the supplier of services in convertible foreign exchange.
Question 9: What is deemed export under GST Law? Whether any supply has been categorized as deemed export by the Government?
Answer: Deemed export has been defined under Section 2(39) of CGST Act, 2017 as supplies of goods as
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on 3(1), 3(3) and 3(5) of the Customs Tariff Act, 1975 and exemption from Central Excise duty will be available for goods specified under the fourth Schedule to the Central Excise Act. IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU. The EOU will be eligible, like any other registered person, to take Input Tax Credit of the said GST paid by its suppliers.
Question 12: Whether supplies to or from EOU will be exempted from GST?
Answer: No.
* Under the GST Law, IGST or CGST plus SGST will be payable by the suppliers who make supplies to the EOU. The EOU will be eligible to take Input Tax Credit of the said GST paid by its suppliers.
* The supplies from EOU will not be exempted from GST, except in the case of zero rated supplies defined under section 16 of the IGST Act, i.e. supplies made by EOU in the form of physical export or supplies to a SEZ Unit or SEZ Developer for authorized operations.
Question 13: What procedure will be followed by EOU
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GST?
Answer: Yes, because exports have been treated as inter-State supplies under IGST Law.
Question 16: We are engaged in the manufacture of exempted excisable goods for export. We availed input stage rebate used in the manufacture of exported goods. How would our case be dealt under GST law if our supply remains an exempt supply?
Answer: Under IGST law a person engaged in export of goods which is an exempt supply is eligible to avail input stage credit for zero rated supplies. Once goods are exported, refund of unutilized credit can be availed under Section 16(3)(a) of IGST Act, 2017 and Section 54 of the CGST Act, 2017 and the rules made thereunder.
Question 17: We are merchant exporters dealing in various products.As per current procedure, we purchase goods from a particular factory against CT1/ARE1 so that no excise is levied on us. After goods are exported, we provide proof of export and Form H (for sales tax exemption) to the concerned factory. How would GST impact us and wh
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this period, higher rate of duty drawback (composite AIR) shall be available subject to conditions that no ITC of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.
Question 19: I supply goods to SEZ units and developers. For such supplies, presently drawback is available to the recipient or to me (if recipient gives a disclaimer). What is status of such drawback under GST regime?
Answer: There is no change except for the fact that if drawback is claimed by DTA supplier, the claim needs to be filed with the jurisdictional Customs Authorities.
Question 20: Whether an EOU can clear goods in DTA?
Answer: Yes, an EOU can clear goods in DTA in accordance with the provisions laid in the Foreign Trade Policy.
Question 21: Will an exporter be required to pay GST in case of goods procured from unregistered persons (including unregistered job workers)?
Answer: In case of supply by an unregistered person (including unregistered j
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uel for captive power generation.
* As an export facilitation measure, for the transition period of 3 months, from July to September, 2017, Drawback at higher composite rates will continue to be granted subject to certain safeguards i.e. for claiming the higher rate of drawback, the exporter has to make a declaration and certificate is required that no Input Tax Credit (ITC) of CGST/IGST is claimed, no refund of IGST paid on export goods is claimed and no CENVAT credit is carried forward.
* In absence of such certification, drawback will be restricted to the customs portion of drawback.
Question 2: Is Drawback at a higher All Industry Rate (AIR) admissible if an exporter has not availed Input Tax Credit of GST or refund of IGST paid on exported goods ?
Answer: No. After 30th September 2017, drawback will be admissible only at lower rate determined on the basis of the custom duties paid on the goods imported for supplying goods for export.
Question 3: If an exporter has stock of
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e having jurisdiction over the factory where export goods were manufactured. Under GST regime, will there be any change regarding filing of application for fixation of brand rate?
Answer: With effect from 1st July 2017, applications for fixation of brand rate shall be filed with the Commissioner of Customs having jurisdiction over place of export of goods i.e the port/Airport/ICD etc. where Shipping Bill was filed. This shall be applicable even for exports made prior to 1st July 2017 for which application is yet to be filed. In case exports are from multiple places, application shall be filed with the Commissioner of Customs having jurisdiction over any one of the places of export of goods.
Question 6: Is there also a change under the GST regime in respect of filing of application for fixation of brand rate of Drawback for supplies to SEZ units and SEZ Developers?
Answer: Prior to 1st July 2017, applications for fixation of brand rate for supplies to SEZ units and SEZ Developers use
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Customs Act, 1962 is available for duties paid at the time of importation. Therefore, whatever duties / taxes are paid at the time of importation of goods, Drawback of the same will be granted. Drawback of Basic Customs Duty plus Additional Duty of Customs (CVD) plus Special Additional Duty (SAD) paid on the goods imported prior to 1st July 2017 will be paid even if the re-export is made after 1st July 2017. Similarly, in respect of the goods imported after 1st July 2017, Basic Customs Duty plus IGST plus Compensation Cess will be paid and Drawback of all of these would be paid on re-export of such imported goods.
Question 8: Under the GST regime, will benefit of exemption from all duties available under Advance authorization scheme, EPCG scheme and duty credit scrips such as Merchandise Exports from India Scheme (MEIS) & Service Exports from India Scheme (SEIS) will continue?
Answer: After 1st July 2017, the benefits under all the said schemes shall be restricted only to Basic Cust
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No TDS on component of CGST, SGST and UTGST- thanks for timely Circular- more scope and clarity is desired
By: – DEVKUMAR KOTHARI
Income Tax
Dated:- 21-7-2017
References and links:
CIRCULAR No. 23/2017 dt. 19th July 2017 (appears applicable to all levies of GST)
Circular No. 1/2014 dated 13.01.2014 (Extended NO TDS on service tax on all services)
Circular No.4/2008 dated 28-04-2008 (No TDS on service tax on rent, S 194 J)
CIT (TDS) Jaipur v. Rajasthan Urban Infrastructure and 239/2011) 2013 (8) TMI 12 – RAJASTHAN HIGH COURT
General discussion about nature of GST and documentation aspects:
GST (CGST, SGST and UTGST)- diversion at source:
GST is collected by a registered supplier of goods or service provider, as a levy
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asthan Urban Infrastructure (supra.) , the earlier circular was modified to extend no TDS on service tax element in cases of other services on which tax is deductible u/s 194J.
As per contract or agreement:
There can be a written or verbal contract or agreement. There can be contract by way of conduct between parties and also by way of trade practices.
Generally GST or any levy, which is levied is to be paid by the customer / client, unless otherwise decided. This is for the reason that levy of tax is not stagnant, it may change from time to time. Therefore, tax is to be paid by customer / client, at the time when levy is attracted and at the applicable rate at that time.
GST Charged separately:
As per format of Tax Invoice a registere
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separately or rates are mentioned inclusive of GST.
b. In case receiver of services is required to pay tax under reverse charge method, then there should not be TDS on GST paid under reverse charge mechanism (RCM). The amount paid under RCM is neither paid nor credited to account of service provider or supplier.
c. GST on all supplies and services should be exempted from TDS and piecemeal approach should be avoided this is because provisions of GST and TDS and TCS are changing from time to time and there can be frequent changes due to implementation of GST is its initial stage.
A clarification on above issues would be helpful for taxpayers and tax authorities both.
Scholarly articles for knowledge sharing by authors, experts, profe
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Notification under Section 54/2017 of Customs Act, 1962 Sub section (1) of Section 25 of Customs Act 1962 seeks to exempt education cess on IGST and Compensation cess on import of good -Customs
PUBLIC NOTICE NO. 185/2017 Dated:- 21-7-2017 Trade Notice
Customs
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI-II
CUSTOMS HOUSE, 60, RAJAJI SALAI, CHENNAI – 600001
F.No. S.Misc.01/2017 – Appg. Main
Dated: 21.07.2017
PUBLIC NOTICE NO. 185/2017
S
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Notification under Section 50/2017 of Customs, Act, 1962 Sub section (1) of Section 25 of Customs Act 1962 seeks to supersede notification No. 12/2012- Customs dated 17.03.2012 and prescribes effective rates of customs duty and IGST for goods imported into India Customs
PUBLIC NOTICE NO. 181/2017 Dated:- 21-7-2017 Trade Notice
Customs
MINISTRY OF FINANCE, DEPARTMENT OF REVENUE
OFFICE OF THE COMMISSIONER OF CUSTOMS, CHENNAI-II
CUSTOMS HOUSE, 60, RAJAJI SALAI, CHENNAI – 600001
F.No. S.
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Extension of time limit for filing intimation for composition levy under sub-rule (1) of rule 3 of the CGST Rules, 2017
Order No. 01/2017-GST Dated:- 21-7-2017 Central GST (CGST)
GST
CGST
CGST
F. No. 345/114/2017-GST
Government of India
Ministry of Finance
Department of Revenue
Central Board of Excise and Customs
GST Policy Wing
***
New Delhi, the 21st July, 2017
Order No. 01/2017-GST
Subject: Extension of time limit for filing intimation for composition levy under sub-ru
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Extension of time limit for filing intimation for composition levy under sub-rule (1) of rule 3 of the SGST Rules, 2017
01/2017-GST Dated:- 21-7-2017 Gujarat SGST
GST – States
ORDER
By the Commissioner of State Tax,
Gujarat State, Ahmedabad
Dated 21st July, 2017
Order No. 01/2017-GST
No.GSL/S.168/B.2
Subject: Extension of time limit for filing intimation for composition levy under sub-rule (1) of rule 3 of the SGST Rules, 2017
In exercise of the powers conferred by section 168 of
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Subject: Operational problems being faced by EOU in GST regime consequent to amendment in Notification No. 52/2003-Customs dated 31.03.2003– reg.
94/17 Dated:- 21-7-2017 Trade Notice
Customs
OFFICE OF THE COMMISSIONER OF CUSTOMS (EXPORT-II)
NEW CUSTOM HOUSE, BALLARD ESTATE,
MUMBAI 400 001.
File No.S/6-B-25/17-18 EXP-II
Date: 21.07.2017
PUBLIC NOTICE NO. 94/17
Subject: Operational problems being faced by EOU in GST regime consequent to amendment in Notification No. 52/2003-Customs dated 31.03.2003- reg.
Attention of the Trade is invited to Board's Circular No. 29/2017-Customs dated 17.07.2017 issued vide F.No. DGEP/EOU/GST/16/2017.
2. EOUs are allowed duty free import of goods under notification No.52/2003-Custom dated 31-
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ncrease or change during this period of one year.
c) Trade has also sought a clarification regarding inter unit transfer of goods from one EOU to another, which was supported by procurement certificate (PC) in view of Circular no. 35/2016 -Custom dated 29-7-2016 .
d) Trade has also requested to continue the procedure of procurement certificates for transitional period for import of goods by EOUs.
4. Matter has been examined. It has been decided by Board, that –
(i) The B-17 bond, being a general purpose running bond will serve the requirement of continuity bond to be submitted under Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, and therefore EOU/STP/EHTP units are not required to submit separate continuity bond.
(
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procurement certificate for import of goods.
(iv) The inter unit transfer would be on invoice on payment of applicable GST taxes. However, such transfer would be without payment of custom duty. The supplier unit will endorse on such documents the amount of custom duty, availed as exemption, if any, on the goods intended to be transferred. The recipient unit would be responsible for paying such basic customs duty, as is obligated under Notification no. 52/2003-Cus dated 31-3-2003 (as amended), when the finished goods made out of such goods or such goods are cleared in DTA. The circular no. 35/2016 -Custom dated 29-7-2016 would stand amended to the extent that no procurement certificates would be required for inter- unit transfer.
5. Diffi
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