Analysis of Notification No. 26/2018–Central Tax dated 13th June, 2018
Second proviso added to Rule 37(1) of CGST Rules
- Rule 37(1) requires reversal of ITC where value of supply is not paid within the stipulated period.
- First proviso deems value to be paid where supplies are made without consideration in terms of Schedule I
- Second proviso now added also deems value to be paid in cases covered by Section 15(2)(b) i.e. any amount which the supplier is liable to pay in relation to supply which has been incurred by the recipient
Examination for GST Practitioners
- Second proviso to Rule 83(3) amended
- Time limit for GST Practitioners [Only those covered by Section 83(1)(b) i.e sales tax practitioner or tax return preparer rolled in GST] to clear the stipulated exam increased to 18 months from one year
- Time limit for other GST Practitioners in terms of first proviso to Rule 83(3) is yet to be fixed
Refund on account of inverted duty structure
- Rule 89(5) – Formula for refund- earlier substituted w.e.f 18.04.18. The substitution now made effective retrospectively with effect from 01.07.2017.
- Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.
Refund of Compensation Cess
- Second Proviso to Rule 97(1) inserted by virtue of which 50% of the Compensation Cess amount, determined under Section 54(5) shall be deposited in the Consumer Welfare Fund; The rest 50% shall go the Consumer Welfare Fund of State
Refund in certain cases ( UINs etc; Section 55 of CGST Act)
- Rule 95(3): The refund of tax paid by the applicant shall be available if‑
- (a) the inward supplies of goods or services or both were received from a registered person against a tax invoice [
and the price of the supply covered under a single tax invoice excels five thousand rupees, excluding tax paid, if any] - Rule 95(3)(a) was amended earlier wherein above crossed red portion was omitted vide Notification No. 75/2017-Central Tax dated 29.12.2017. The amendment has now been made effective retrospectively with effect from 01.07.2017.
Powers of the anti-profiteering authority (Rule 133 (3) amended)
- Where the eligible person does not claim return of the amount or is not identifiable;
- The authority can now order:
- the deposit of the amount (equivalent to the amount not passed on by way of commensurate reduction in prices along with applicable interest at the rate of eighteen per cent)
- @ 50% each in the Consumer Welfare Fund of Centre (Section 57 of CGST Act) and Consumer Welfare Fund of the respective State ( Section 57 of SGST Act)
- No e-way bill required for movement of empty cylinders for packing of LPG for reasons other than supply.
- Rule 138 (14) concerning e-way bills amended. One more situation where no e-way bill will be required for movement of goods prescribed. Following clause (o) inserted in rule 138(14):
“(o) where empty cylinders for packing of liquefied petroleum gas are being moved for reasons other than supply.”
Composition Dealer: GSTR-4
- in FORM GSTR-4, in the Instructions, for SI. No. 10, the following shall be substituted, namely:-
- “10. For the tax periods July, 2017 to September, 2017, October, 2017 to December, 2017, January, 2018 to March,2018 and April, 2018 to June, 2018, serial 4A of Table 4 shall not be furnished.”;
- Earlier this was waived till December, 2017
- Serial 4A of Table 4 requires the Composition dealer to furnish details of inward supplies received from a registered supplier (other than supplies attracting reverse charge)
Application for Enrolment as GST Practitioner ( GST PCT-01)
- with effect from 01st July, 2017, in FORM GST PCT-01, in PART B,
- (a) against SI. No. 4, after entry (10), the following inserted‑
- “(11) sales lax practitioner under existing law for a period of not less than five years
- (12) Tax return preparer under existing law for a period of not less than five years”:
- (b) after the “Consent”, the following declaration inserted‑
- (iv) I have not been convicted by a competent court.”;
- in FORM GST RFD-01, in Annexure-1,
- (a) for Statement 1A, a new statement has been substituted.
Statement 1A is to be filed by persons claiming refund on account of inverted rate structure
- Statement 1A is to be filed by persons claiming refund on account of inverted rate structure. The new statement requires the GSTN no of the supplier to be mentioned
Statement 5B is required to be filed for a refund claim on account of deemed exports
- Similarly for Statement 5B, a new Statement has been substituted. Statement 5B is required to be filed for a refund claim on account of deemed exports. The new statement requires GSTN of the supplier to be mentioned.
Refund of tax to certain persons – Rule 95(3)(a)
Condition of invoice amount amount of more than Rs. 5000 to claim refund is removed.
Consumer Welfare Fund (Rule 97(1)- New Proviso added
Provided that an amount equivalent to fifty per cent of the amount of cess determined under sub-section (5) of section 54 read with section 11 of the Goods and Services Tax (Compensation to States) Act, 2017 (15 of 2017), shall be deposited in the Fund.
