CMA Rakesh Bhalla
CMA Rakesh BhallaGST

GST Returns –Due date for filing specified returns extendedNotification Nos. 5963/2017 –Central Tax, all dated 15-11-2017 have been issued for this purpose.

Return Month/ Quarter Revised due date Additional comments
GSTR-4 For the quarter July to September 2017 24-Dec-2017 To be filed by Composition supplier.
GSTR-5 For the month July, August, September & October 2017 11-Dec-2017 To be filed by a non-resident taxable person.
GSTR-5A For the month July, August, September & October 2017 15-Dec-2017 To be filed by person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient.
GSTR-6 For the month July 31-Dec-2017 To be filed by Input Service Distributor (ISD).
ITC-04 For the quarter July to September 2017 31-Dec-2017 In respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another.

Late fees for delayed filing of GSTR-3B waivedLate fee payable by any registered person for failure to furnish the return in FORM GSTR-3B for the month of October, 2017 which is in excess of an amount of twenty five rupees for every day. Provided that where the total amount of central tax payable in the said return is nil, waived to the extent which is in excess of an amount of ten rupees for every day, Notification No. 64/2017-Central Tax, dated 15-11-2017.

GSTR-3B made mandatory till March 2018Notification Nos. 56/2017-Central Tax, dated 15-11-2017.

SI. No. Month Last date for filing of  return in FORM GSTR-3B
1 January 2018 20th February 2018
2 February 2018 20th March 2018
3 March 2018 20th April 2018

Due date for filing GSTR-1Notification Nos. 5758/2017-Central Tax, dated 15-11-2017 Time limit for furnishing details of outward supplies in FORM GSTR-1 by such class of registered persons,

  • having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year
SI No. Months for which the details in FORM GSTR-1 are furnished  Time period for furnishing the details in FORM GSTR-1
1 July – October, 2017 31st December, 2017
2 November, 2017 10th January, 2018
3 December, 2017 10th February, 2018
4 January, 2018 10th March, 2018
5 February, 2018 10th April, 2018
6 March, 2018 10th May, 2018
  • having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year
SI No. Months for which the details in FORM GSTR-1 are furnished Time period for furnishing the details in FORM GSTR-1
1 July – September 2017 31st December, 2017
2 October – December 2017 15th February, 2018
3 January – March 2018 30th April, 2018

♠ Rate of GST reduced on large number of goods and services As decided by the GST Council in its 23rd meeting held on 10th November, rates of GST on number of products and services have been reduced. [Notification Nos. 41, 42 and 46/2017-Central Tax (Rate), all dated 14-11-2017 and effective from 15-11-2017]

  • List of 28% GST rated goods has been pruned substantially, from 224 to 50 tariff headings,

Some of the tariff headings where rates have been reduced from 28% to 18% are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
3922 Baths, shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics.
4013 Inner tubes of rubber [other than of a kind used on/in bicycles, cycle- rickshaws and three wheeled powered cycle rickshaws; and Rear Tractor tyre tubes]
4017 Hard rubber (for example ebonite) in all forms, other than waste and scrap; articles of hard rubber
4203 Articles of apparel and clothing accessories, of leather or of composition leather
8427 Fork-lift trucks; other works trucks fitted with lifting or handling equipment
8428 Other lifting, handling, loading or unloading machinery (for example lifts, escalators, conveyors, teleferics)
8483 Crank shafts for sewing machine; bearing housings, incorporating ball or roller bearings, bearing housings, not incorporating ball or roller bearing; gears and gearing, other than toothed wheels, chain sprockets and other transmission elements presented separately; ball or roller screws;
8484 Gaskets and similar joints of metal sheeting combined with other material or of two or more layers of metal; sets or assortments of gaskets and similar joints, dissimilar in composition, put up in pouches, envelopes or similar packings; mechanical seals
  • Rates reduced on several goods from 28% to 12%
  • Some of the tariff headings where rates have been reduced from 28% to 12% are as under:
Chapter/ Heading/ Sub-heading/ Tariff item Description
8509 Wet grinder consisting of stone as a grinder
8710 Tanks and other armoured fighting vehicles, motorised, whether or not fitted with weapons, and parts of such vehicles
  • Rates reduced on several goods from 18% to 12%,

Some of the tariff headings where rates have been retained as 28% are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
8415 Air-conditioning machines, comprising a motor-driven fan and elements for changing the temperature and humidity, including those machines in which the humidity cannot be separately regulated
8525 Digital cameras and video cameras recorders [other than CCTV]
8702 Motor vehicles for the transport of ten or more persons, including the Driver
8704 Motor vehicles for the transport of goods [other than Refrigerated motor vehicles]
8706 Chassis fitted with engines, for the motor vehicles of headings 8701 to 8705
8711 Motorcycles (including mopeds) and cycles fitted with an auxiliary motor, with or without side-cars; side-cars
  • Rates reduced on several goods from 18% to 12%,

Some of the tariff headings where rates have been reduced from 18% to 12% are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
2106 90 91 Diabetic foods
0402 91 10,

0402 99 20

Condensed milk
2804 40 10 Medicinal grade oxygen
3215 Printing ink, writing or drawing ink and other inks, whether or not concentrated or solid [(other than Fountain pen ink and Ball pen ink)]
4202 22 20 Hand bags and shopping bags, of cotton
4202 22 30 Hand bags and shopping bags, of jute
  • Rates reduced on several goods from 18% to 5%,

Some of the tariff headings where rates have been reduced from 18% to 5% are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
1704 Puffed Rice Chikki, Peanut Chikki, Sesame Chikki til chikki, til patti, til revdi, sugar makhana, gajak, groundnut sweats Khaja, Khajuli, Anarsa, sakar, khadi sakar, harda, sakariya, gatta, kuliya, elaichidana, lukumdana
2503 00 10 Sulphur recovered as by-product in refining of crude oil
2621 Fly ash
  • Rates reduced on several goods from 12% to 5%,

Some of the tariff headings where rates have been reduced from 12% to 5% are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
0801 Desiccated Coconut
4114 Chamois (including combination chamois) leather; patent leather and patent laminated leather; metallised leather
5607 (a)Coir, cordage and ropes and (b) Jute Twine
9507 Fishing hooks
  • Similarly, rate of GST on some goods came down to nil.

Some of the tariff headings where rates have been reduced from 5%/3% to Nil are as under:

Chapter/ Heading/ Sub-heading/ Tariff item Description
1701 Khandsari sugar
7113 Bangles of lac / shellac
0714 Manioc, arrowroot, salep, Jerusalem artichokes, sweet potatoes and similar roots and tubers with high starch or inulin content, dried, whether or not sliced or in the form of pellets
1210 10 00 Hop cones, neither ground nor powdered nor in the form of pellets
  • In respect of services, stand-alone restaurants irrespective of being air conditioned or otherwise, would be liable to GST at the rate of 5%, without the facility of input tax credit (ITC).
  • Restaurants in hotel premises having room tariff of less than Rs. 7500 per unit per day are also covered under this rate of tax, without ITC.

Exemption to tax payment at time of receipt of advance  No. 66/2017-Central Tax, dated 15-11-2017 to exempt all registered persons [except taxpayers who opted for composition levy under Section 10 of CGST Act] from payment of tax on advances received in case of supply of goods.

Registration exemption to specified service provider providing service through electronic commerce operator This exemption is available to service providers having an aggregate turnover of less than Rs. 20 lakh (Rs. 10 lakh in case of special category States) in a financial year. Notification No. 65/2017-Central Tax, dated 15-11-2017.

Reduced rate of GST for specified supplies to research institutions, etc. (Effective form 15-11-2017)Notification No. 45/2017-Central Tax (Rate), dated 14-11-2017 has been issued to provide for 2.5% CGST on specified goods supplied to public funded research institutions, universities, IITs, NITs, IISC (Bangalore), research institutions, departments and laboratories of Central / State Governments and Regional Cancer Center (Cancer Institute). This list excludes hospitals.

IGST exemption to inter-State movement of rigs, tools and spares Inter-State movement of such goods between distinct persons shall be treated neither supply of goods nor supply of services and no IGST will be levied. Circular No. 21/21/2017-GST, dated 22-11-2017 issued, however notes that such exemption will not be available if movement is for further supply of such goods, and that GST will be payable on repairs and maintenance of such goods.

EOUs –Procedure for procurement from DTA CBEC has prescribed procedure and safeguards in respect of supply of goods to EOU, in order to ensure smooth processing of refund claims in respect of such deemed exports. EOU in this regard is required to intimate, in a prescribed form, to the registered supplier and to jurisdictional officers of the supplier and that of EOU. As per Circular No. 14/14 /2017-GST, dated 6-11-20017, tax invoice as endorsed by EOU will be considered as proof of deemed export supplies made by the registered supplier to the EOU.

Refund of unutilised ITC in case of export of fabrics, available Manufacturer of fabrics is eligible for refund of unutilized ITC of GST paid on inputs (other than ITC of GST paid on capital goods) in respect of fabrics manufactured and exported by him. Circular No. 18/18/2017-GST, dated 16-11-2017 clarifying this, observes that restriction on refund of unutilised ITC under Notification No.5/2017-Central Tax (Rate) would not apply to zero rated supplies.

Terracotta idols eligible for nil GST rate Tax Research Unit of the Ministry of Finance has clarified that as terracotta is clay based, terracotta idols will be eligible for Nil rate under Sl. No.135A of Notification No. 2/2017-Central Tax (Rate), dated 28-6-2017, which prescribes nil rate for clay idols. Circular No. 20/20/2017-IGST, dated 22-11-2017.

Milling of paddy into rice liable to GST Circular No. 19/19/2017-GST, dated 20-11-2017 issued by Ministry of Finance clarifying that milling of paddy into rice on job work basis is liable to GST at the rate of 5%, on the processing charges (and not on the entire value of rice) under Sl. No. 26 of Notification No. 11/2017-Central Tax (Rate). According to this circular milling of paddy is not an intermediate production process in relation to cultivation of plants.

Customs

IGST payable on goods transferred or sold while being in bonded warehouse Transfer of goods deposited in a customs bonded warehouse, by importer to another person, would attract IGST at the value determined as per Section 20 of IGST Act read with Section 15 of CGST Act and the rules made there under. According to CBEC Circular No. 46/2017-Cus., such transfer will amount to inter-State supply of imported goods, as it takes place before the goods cross customs frontiers of India.

Drawback –CBEC rescinds Circulars prescribing monetary limits for drawing of samples CBEC has rescinded Circular Nos. 34/95-Cus., 57/97-Cus., and 25/2005-Cus. prescribing monetary limits with respect to drawing of samples for grant of drawback and for giving exemptions from sampling requirements in certain situations. Circular No. 47/2017-Cus., dated 27-11-2017.

Electronic sealing of export containers postponed Considering insufficient stock of e-seals with the notified vendors, CBEC has postponed implementation of mandatory e-sealing of export containers. E-sealing will be mandatory from 15th of December, 2017 for exporters who have been permitted self-sealing facility, AEO exporters, and exporters availing supervised stuffing at their premises for 15 specified ports and ICDs. CBEC Circular No. 44/2017-Cus., dated 18-11-2017 also states that e-sealing procedure for full container load stuffed at approved premises would be mandatory from 1-1-2018 for all ports/ICDs.

Refund of IGST on exports –CBEC identifies certain issues made by exporters and prescribes solutions while filing GSTR-1 and Shipping Bills, affecting disbursal of IGST refunds. Circular No. 42/2017-Cus., dated 7-11-2017 notes that in case incorrect Shipping Bill number has been mentioned in GSTR-1 of July, 2017, the same can be amended by mentioning the correct Shipping Bill number in Table 9A of GSTR-1 of August. Exporters have also been asked to fill details of zero rated supplies in Table 6A in GSTR-1 through utility provided at https://gst.gov.inin respect of exports in August 2017. Press release dated 29th November 2017 has also been issued regarding the Refund of IGST paid on goods exported out of India & unutilized Input Tax Credit on inputs or input services used in making the exports.

IGST exemption to imports under lease All goods, vessels, ships (other than motor vehicles) imported under lease, by the importer for use after import have been exempted from IGST payable at the time of import, subject to specified conditions. Notification No. 85/2017-Cus., dated 14-11-2017 amends Notification No. 50/2017-Cus., while also granting exemption from BCD and IGST to lifesaving drugs/medicines for personal use, supplied free of cost by overseas supplier subject to conditions including that the goods are imported by individual for personal use.

Ready made garments and made-ups –MEIS rates enhanced Rates of incentive provided by the government under Merchandise Exports from India Scheme (MEIS) for export of ready made garments and made-ups have been revised upwards. According to DGFT Public Notice No. 42/2015-20, dated 24-11-2017, this increase from 2% to 4% is valid from 1-11-2017 till 30-6-2018.

Dumpers for coal mines eligible for Project Import benefit CBEC has clarified that dumpers designed for mining activities and to be used in coal mines are eligible for Project Import benefits if same is certified by concerned sponsoring authority. Instruction No. 17/2017-Cus., dated 20-11-2017.

Pulses exports –Prohibition removed All varieties of pulses, including organic pulses, have been made ‘free’ for export without any quantitative ceilings if exports are made through EDI ports. DGFT Notification No. 38/2015-20, dated 22-11-2017 issued in this regard however notes that for export through non-EDI Land Custom Stations (LCS) on Indo- Bangladesh and Indo- Nepal border, the exporter will have to do prior-registration of quantity with DGFT.

Drawback in case of inter-unit transfer of raw material between SEZ units Calcutta High Court has held that Rule 22(2) or Rule 34 of the Special Economic Zone Rules, 2006 was not violated even if the raw materials brought into one unit are utilized in the manufacture of goods in another unit of the assessee in the SEZ and exported there from.

[Kariwala Industries Limited v. Development Commissioner-2017-VIL-579-CAL-CU].

Valuation –Different prices when description of goods same CESTAT Chennai has allowed the appeal of assessee in a valuation dispute where the importer had declared different prices for the goods having the same description. [Amoog Chemicals v. Comm.-2017-TIOL-4165-CESTAT-MAD].

Central Excise and Service Tax

Budgetary support (Refund) for units earlier availing area-based exemption CBEC has issued Circular No. 1060/9/2017-CX, dated 27-11-2017 prescribing procedure for manual filing and processing of refund claims (budgetary support claims) relating to first quarter ending Sept., 2017, by units which were earlier availing area based exemption. Refund of GST is limited to 58% of CGST or 29% of IGST paid in cash.

Refund of Education Cess under area based exemption Supreme Court of India has allowed refund of Education Cess and Secondary and Higher Secondary Education Cess which were paid along with Central Excise duty, once said excise duty itself was exempted in case of units located in North-East States and in J&K.

[SRD Nutrients Private Limited v. Commissioner–Judgement dated 10-11-2017 in CA Nos. 2781-2790/2010 and others, Supreme Court]

Cenvat Rule 6 –Sale of items recovered during ship breaking is not trading CESTAT Mumbai has dismissed the appeal filed by the Revenue department against dropping of demand under Rule 6 for reversal of credit on items like motors, generator, engine, remnant oil etc., cleared by assessee after breaking of the ship.

[Commissioner v. Arya Corporation–Order dated 27-10-2017 in E/85915/17, CESTAT Mumbai]

Cenvat credit on security service for transit of goods when not admissible In a case where assessee was not including the value of freight and insurance incurred on transportation of goods to the buyer’s premises in the value of the goods, Mumbai Bench of the CESTAT has held that Cenvat credit of service of security guard availed for transit of goods from the factory to the buyer’s premises was not admissible. It was held that the contention that buyer’s premises should be treated as place of removal, was, therefore, not sustainable.

[Bharat Bijlee Ltd. v. Commissioner–Order dated 27-10-2017 in E/86540/17, CESTAT Mumbai]

Cenvat Rule 6 and Central Excise Rule 57CC are significantly different Dismissing the appeal filed by the assessee against the demand under Cenvat Credit Rule 6 where clearances were made while availing benefit of Notification No. 12/2012-C.E., CESTAT Mumbai has held that provisions of Rule 57CC of Central Excise Rules, 1944 are not the same as Rule 6(6) of Cenvat Credit Rules, 2004.

[Kelvion India Pvt. Ltd. v. Commissioner–Order dated 27-10-2017 in E/86678/17, CESTAT Mumbai]

Cenvat Credit of tax paid on rent of dealer’s premises when available Bangalore Bench of CESTAT has allowed appeal of the assessee in respect of Cenvat credit of Service tax paid on rent of dealer’s premises and on security services availed for such premises.

[Meyer Organics Pvt. Ltd. v. Commissioner-2017-VIL-938-CESTAT-BLR-ST]

Area based exemption –Computation of value addition CESTAT Chandigarh has held that when an amount of duty was refunded to the assessee, under Notification No. 1/2002-C.E., the same had to be deducted from the Central Excise duty paid by the assessee while arriving at actual value addition. [Kangaro Industries Limited v. Commissioner-2017-VIL-935-CESTAT-CHD-CE]

Export of service –SMS aggregator service to foreign company within India CESTAT Mumbai has allowed refund of unutilised Cenvat credit when SMS aggregator service was provided by the assessee to foreign company (Facebook) for its subscribers in India.

[Commissioner v. Gupshup Technology India Pvt. Ltd.-2017-VIL-932-CESTAT-MUM-ST]

“Cheeselings” and “Musst Bites” edible preparations eligible for exemption as “Namkeen” Observing that there was no definition of ‘namkeen’, and that it cannot be concluded that the product is a ‘namkeen’, on the basis of whether the goods are fried or otherwise, CESTAT Mumbai has held ‘Cheeselings’ and ‘Musst Bites’ as ‘namkeen’.

[Parle Products Pvt. Ltd. v. Commissioner-2017-VIL-914-CESTAT-MUM-CE].

VAT

Rectification in Returns –Regularization of technical omissions to ensure tax compliance In a case involving denial of rectification of some errors in the returns filed by the assessee, which came to light after an audit, Kerala High Court has held that the mere apprehension, that if the assessee was permitted to pay differential tax, he might claim input tax credit, cannot be a ground to deny the opportunity to rectify an anomaly in the returns. It was held that since the assessee voluntarily came forward to rectify omissions, his action cannot be said to be pursuant to detection of any suppression by the Department.

[Alwaye Sugar Agency v. Assistant Commissioner-2017-VIL-569-KER]

*Member ZAC Chandigarh, Service Tax, Govt. of India, Member RAC Chandigarh, Central Excise & Customs, Member Indirect Tax committee SIAM, Member, ASSOCHAM Indirect Taxes Committee, Chief General Manager Finance- SML Isuzu Ltd. , Winner Achiever  Award 2015 By ICAI (CMA)

Information source- M/s LKS, M/s Nitya tax Associates, Economic Times, Financial express, GST.com and other sources-many thanks to all.

With Warm Regards & Jai Hind

(Author can be reached at nancybhalla@yahoo.com)

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8 responses to “GST, Excise, Service Tax, Customs & VAT updates for November 2017”

  1. KAMLESH SHAH says:

    INPUT CREDIT Purchase BILL OF NOVEMBER 2017 MATERIAL RECEIVED AS ON 4 DECEMBER 2017. WHAT IS THE LAST DATE FOR INPUT CREDIT FOR NOVEMBER 2017 BILL?

  2. Bharath says:

    Thanks for your gst updation and is very useful information.

  3. uvaraj says:

    It is very useful article

  4. Rohini Kumthekar says:

    Good article…

  5. saravanan says:

    Thank you sir. Kindly update last date of gstr2 for july

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