Chapter IX of the Customs Act, 1962 provides for deposit of goods into a customs bonded warehouse licensed under section 57 or 58 or 58A without payment of duty and the procedures to be followed with respect to the warehoused goods. Sub-section (5) of section 59 provides that the importer is at liberty to transfer the ownership of such goods to another person while the goods remain deposited in the warehouse. Trade has expressed doubts over applicability of GST when such Transfer of Ownership takes place, while the goods remain deposited in the warehouse. To clarify the issue CBEC issued a Circular No. 46/2017-Customs; Dated 24th November 2017. The essence of the Circular decoded here in this article:
In terms of para 2.52 of the Indian Foreign Trade Policy (2015-2020) exports proceeds from Nepal and Bhutan can be realized in Indian rupees. However, in GST law, Export of Goods and Export of Services are treated differently
Procedure regarding procurement of supplies of goods from DTA by Export Oriented Unit (EOU) / Electronic Hardware Technology Park (EHTP) Unit / Software Technology Park (STP) Unit / Bio-Technology Parks (BTP) Unit under deemed export benefits under section 147 of CGST Act, 2017 is described vide Circular No. 14/14 /2017 – GST, 6th November, 2017
The Procedures for Procuring from Domestic Suppliers by Merchant Exporter is : 1. Both the Supplier and Merchant Exporter must be Registered Persons 2. The registered supplier shall supply the goods to the registered recipient on a tax invoice Charging GST : a. Intra-State – 0.05% of CGST + 0.05% of SGST b. Inter- State – 0.1% of IGST
GST is expected to Transform and prove to be a boost for over $130 billion Logistic Industry. The logistics space in India is expected to grow at a rate of 9-10 percent over the medium-term” according to rating agency ICRA. While the key driving factor on the demand side would be the economic recovery, the trend towards outsourcing of non-core activities like logistics, warehousing and associated activities to integrated players is likely to drive the share of the organized segment, it said.The domestic sector is currently in a transformation phase with game-changing trends like implementation of GST, increasing focus by foreign investors across the logistics value chain, growing demand for end-to-end solution providers and emergence of new avenues such as e-commerce, logistics parks, cold chains and new startups. Further it said “The government’s thrust towards building multi-modal transportation infrastructure is also likely to have a significant influence,”
Deemed export has been defined under Section 2(39) of CGST Act, 2017 as supplies of goods as may be notified under section 147 of the said Act. As per Sec 147 of CGST Act, the Government may, on the recommendations of the Council, notify certain supplies of goods as deemed exports, where goods supplied do not leave India, and payment for such supplies is received either in Indian rupees or in convertible foreign exchange, if such goods are manufactured in India.
Let us discuss in this article the Impact of GST on Buying / Selling a Used Vehicle. Since the transactions happen in different ways, broadly as below, we shall discuss the impact of GST accordingly. Individual Sells to Individual (C2C), Individual Sells to Un-registered Dealer (C2C), Individual Sells to Registered Dealer (C2B), Registered Dealer Sells to Any Buyer (B2B / B2C), Leasing of Vehicle, Exchange of Old Vehicle with New
Reverse Charge Mechanism which proved to be most Draconian provision has been now relaxed, of course temporarily till 31st March’ 2018, as per the decision taken at 22nd HST Council meeting on 6th Oct’2017
There was great Euphoria, Enthusiasm & Excitement in Export Community when a flash news thrashed in the media after the 22nd meeting of GST Council on 6th October 2017 that recommended release of Refunds and other beneficial proposals for exporters as a boon for them and to normalize the working of exporters and to ensure the inflow of foreign exchange for the exchequer.
The 22nd meeting of the Council comes on the back of promises made by Prime Minister Narendra Modi on Wednesday (4th Oct, 2017) that the government was committed to removing the glitches and bottlenecks of the GST regime. Accordingly the GST Council, in its 22nd Meeting which was held on 6th Oct, 2017 in the national capital under Chairmanship of the Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley has recommended the following facilitative changes to ease the burden of compliance on small and medium businesses:
