Background
- This Presentation covers the GST changes / observations/ press releases/ Tweet FAQs/ Sectoral FAQs released by CBEC since the last update on 22.07.2017. It supplements the earlier GST Updates.
- This presentation is based on CGST Act/Rules/ Notifications. Similar parallel provisions in State Laws may be referred to as required
Amendment in CGST Rules
- Rule 24, 34, 44, 46, 61, 83 and 89 of the CGST Rules, 2017 has been amended by Notification No. 17/2017 – Central Tax dated 27th July, 2017.
- Minor amendments have also been made in FORM GST TRAN-1 & 2 vide above Notification, text of which is available at the link below –
- http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-17-central-tax-english.pdf
- The changes are discussed in the following slides.
Rule 24(4)
- OLD : (4) Every person registered under any of the existing laws, who is not liable to be registered under the Act may, within a period of thirty days from the appointed day, at his option, submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of registration granted to him and the proper officer shall, after conducting such enquiry as deemed fit, cancel the said registration.
- CHANGE : For the words “within a period of thirty days from the appointed day”, the words and figures “on or before 30th September, 2017” shall be substituted;
Rule 34 : Exchange Rate
- Rule 34 of CGST Rules (Old) :
“34. Rate of exchange of currency, other than Indian rupees, for determination of value.-
Rate of exchange of currency, other than Indian rupees, for determination of value.- The rate of exchange for the determination of the value of taxable goods or services or both shall be the applicable reference rate for that currency as determined by the Reserve Bank of India on the date of time of supply in respect of such supply in terms of section 12 or, as the case may be, section 13 of the Act.”
- Amended Rule 34 of the CGST Rules, 2017
“34. Rate of exchange of currency, other than Indian rupees, for determination of value.-
(1) The rate of exchange for determination of value of taxable goods shall be the applicable rate of exchange as notified by the Board under section 14 of the Customs Act, 1962 for the date of time of supply of such goods in terms of section 12 of the Act.
(2) The rate of exchange for determination of value of taxable services shall be the applicable rate of exchange determined as per the generally accepted accounting principles for the date of time of supply of such services in terms of section 13 of the Act.”;
Rule 44. Manner of reversal of credit under special circumstances-
- In Rule 44, with effect from 1st July, 2017, for sub-rules (2) and (3), the following shall be substituted, namely:-
“(2) The amount, as specified in sub-rule (1) shall be determined separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.
(3) Where the tax invoices related to the inputs held in stock are not available, the registered person shall estimate the amount under sub-rule (1) based on the prevailing market price of the goods on the effective date of the occurrence of any of the events specified in sub-section (4) of section 18 or, as the case may be, sub-section (5) of section 29.”
- Portion in green above added
Rule 46 (Invoice)
- In Rule 46 of CGST Rules,2017, for the third proviso, the following proviso has been be substituted, namely:- “Provided also that in the case of the export of goods or services, the invoice shall carry an endorsement “SUPPLY MEANT FOR EXPORT/ SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR EXPORT/ SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”, as the case may be, and shall, in lieu of the details specified in clause (e), contain the following details, namely,- (i) name and address of the recipient; (ii) address of delivery; and (iii) name of the country of destination:”;
- Portion in green above added to take care of supplies to SEZs
Rule 61 ( Filing of returns )
- Deferment of GST Returns for the month of July and August, 2017:
- Rule 61 (5):
- “Where the time limit for furnishing of details in FORM GSTR-1 under section 37 and in FORM GSTR-2 under section 38 has been extended and the circumstances so warrant, the Commissioner may, by notification, specify that return shall be furnished in FORM GSTR-3B electronically through the common portal, either directly or through a Facilitation Centre notified by the Commissioner. “
- Rule 61 (6): Where a return in FORM GSTR-3B has been furnished, after the due date for furnishing of details in FORM GSTR-2—
- (a) Part A of the return in FORM GSTR-3 shall be electronically generated on the basis of information furnished through FORM GSTR-1, FORM GSTR-2 and based on other liabilities of preceding tax periods and PART B of the said return shall be electronically generated on the basis of the return in FORM GSTR-3B furnished in respect of the tax period;
- (b) the registered person shall modify Part B of the return in FORM GSTR-3 based on the discrepancies, if any, between the return in FORM GSTR-3B and the return in FORM GSTR-3 and discharge his tax and other liabilities, if any;
- (c) where the amount of input tax credit in FORM GSTR-3 exceeds the amount of input tax credit in terms of FORM GSTR-3B, the additional amount shall be credited to the electronic credit ledger of the registered person.”;
Other changes
- Rule 83:
In Rule 83, with effect from 1st July, 2017, in sub-rule (3), in the second proviso, for the word “sub-section”, the word “sub-rule” shall be substituted;
- Rule 83 :
In Rule 89, with effect from 1st July, 2017, in sub-rule (4), in clause (E), for the word “sub-section”, the word “clause” shall be substituted;
- FORM GST TRAN-1 :
In FORM GST TRAN-1, with effect from 1st July, 2017, in Sl. No. 7, in Table (a), for the heading of column (2), the heading “HSN as applicable” shall be substituted;
- FORM GST TRAN-2 :
In FORM GST TRAN-2, with effect from 1st July, 2017, in Sl. No. 4 and 5, in the Table, for the heading of column (1), the heading “HSN as applicable” shall be substituted.
Circular No. 01/2017-Compensation Cess dated 26th July, 2017
- Provisions of section 16 of the IGST Act, 2017, relating to zero rated supply will apply mutatis mutandis for the purpose of Compensation Cess
- Exporter will be eligible for refund of Compensation Cess paid on goods exported by him [on similar lines as refund of IGST under section 16(3) (b) of the IGST, 2017]; or
- No Compensation Cess will be charged on goods exported by an exporter under bond and he will be eligible for refund of input tax credit of Compensation Cess relating to goods exported [on similar lines as refund of input taxes under section 16(3) (a) of the IGST, 2017].
Anti Profiteering Authority
- http://www.cbec.gov.in/resources//htdocs-cbec/press-release/CBEC%20Press%20Release%20dt%2025.07.2017%20on%20Ant-Profiteering%20Authority.pdf
- GST Council has formed a Selection Committee to identify and recommend eligible persons for appointment as Chairman and Members of the National Anti-profiteering Authority under GST.
- APA will have one chairman and four technical members
- Empowered to refer cases to DG, Safeguards, CBEC for detailed investigations
- http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ32-2017cs.pdf and http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt73-2017.pdf
- Note and Condition 12A of Notification 131/2016-Cus (N.T.) dated 31.10.2016 by Notification 73/2017- Cus (N.T.) dated 26.7.2017 and the requirement of the certificate from GST officer to claim higher rate of drawback dispensed with.
- Self-declaration by exporter to be taken
- Change effective w.e.f 1st July, 2017
AIR of Drawback
- Export goods which had been cleared from factory, warehouse, etc. prior to 1.7.2017 but let export order has not been issued before 1.7.2017. Such goods are not supplies under GST and accordingly, said Note and Condition 12A is not applicable.
- For such goods, the declaration from exporter or certificate from the then Central Excise officer as applicable in terms of Note and Condition 12 of said Notification No. 131/2016-Customs (NT) shall continue.
Any ISSUES/ queries?
- Twitter Handles
- For General Questions
- https://twitter.com/askGST_GoI
- For technology related issues
- https://twitter.com/askGSTech
- NACIN twitter
- https://twitter.com/GSTNACIN
Dear Sir
We are Private limited wind blades manaufacturing co and we are exempted earlier Service tax and Excise duty we are not utilising from vendor bills becuase we exempted in Excise.
My question is I received bills from vendor with Service Tax charged, Excise duty charged, vat charged bills dated june 2017 i.e earlier of GST, now we can account these bills in Aug 2017 without claiming any vat input and expensing fully Excise and Service bills, please advice jesuraj