Exporters are witnessing sea changes as regards export rules under the existing GST regime as compared to the earlier regime of indirect taxation in India. Particularly the traders and the provider of export services are facing difficulties in filing bonds and Letter of undertaking before making exports. Even the general meaning of exports have changed now as supplies made to SEZ developer or SEZ unit are now treated as export transactions even if they are made intra-state, also sales to export houses and penultimate exports are no longer covered under the definition of export now. Exports which were earlier made without payment of taxes are now made subject to payment of taxes or filing of some special documents in lieu of taxes paid on exports. In our previous article on “Place of Supply under GST”, we covered the nature of supplies to be treated as exports/import of goods or services under GST, so we are not discussing these provisions here. Rather, in this article we will now discuss benefits, procedures and other provisions related to export and import of goods and services under GST in India.
Applicability of Reverse Charge Mechanism is undoubtedly the most discussed topic under GST nowadays. More than 60 percent queries on GST are related to this Reverse Charge Mechanism. Registered Persons are asking their clients for their GSTIN numbers.
Sh. Upender Gupta, Commissioner (GST) issued the first circular under GST vide Circular No.1/1/2017 dated the 26th June, 2017 through the department of Central Board of Excise and Customs.
There is good news for the traders selling items of value exceeding Rs. 25,000/- per piece, which are sold under the brand name of the manufacturer / principal manufacturer and where such items are identifiable as a distinct number such as chassis of a car etc.
A very hot topic of discussion now a days under the proposed GST regime is the availability of INPUT TAX CREDIT to the registered person on the appointed day and the procedure to claim such ITC under the proposed GST regime. Section 140 to 142 under the CGST Act 2017 and respective sections under SGST laws along with Transition Rules determines the availability and procedure to claim carry forward of ITC to the proposed GST regime. CGST Act has been passed by the union government but some states are yet to pass their SGST bills. Two forms GST TRAN-1 and GST TRAN 2 have been prescribed to be filed under GST to avail such ITC.
Section 140 to 142 under the CGST Act 2017 and respective sections under SGST laws along with DRAFT Transition Rules determines the availability and procedure to claim carry forward of ITC to the proposed GST regime. CGST Act has been passed by the union government but some states are yet to pass their SGST bills.
Though everyone is eager to know about do’s and don’ts under the proposed GST regime, however the other aspect which is not much discussed on many platforms but otherwise is equally important and very crucial part of every law is its penal provisions and their applicability for the proper regulations of the law. In the way the charging sections & the regulatory provisions are important for every taxation regime, similarly to enforce any such law properly, it is equally important to make strict provisions in case of non compliance of any such law.
Government is trying hard to implement GST with effect from 1st of July 2017, so the time has come to pull up your socks and keep yourselves ready to handle this transitional phase of the biggest tax reform in India. For the smooth transition from the existing structure of Indirect taxes into the new GST regime, both businessmen and the consultants have to give their best efforts in terms of time and knowledge.
Conditions for availing Composition Scheme- Aggregate turnover of the registered person during the preceding financial year should not exceed Rs. 50 Lakhs in a year. [Section 10(1)].
Articles gives details of Tax Invoice, Credit and Debit Notes under GST to be issued and Time limit within which such documents shall be issued
