1. GST Council in its 26th Meeting held under the Chairmanship of the Union FM, Shri Arun Jaitley today in New Delhi sent a strong positive signal to exporting community by deciding to extend the available tax exemptions on imported goods for further 6 months beyond 31st March,2018.
2. Thus, exporters presently availing various Export Promotion Schemes can now continue to avail such exemptions on their imports up to 1st October,2018, by which time an e-Wallet Scheme is expected to be in place to continue the benefits in future.
Other Updates from 26th GST Council Meetings-
E-way Bill: Recommendations made during 26th GST Council meeting
GST: Extension of Tax Exemptions for Exporters for six months
Recommendations on Data Analytics made during 26th GST Council meeting
3. GST Council also agreed today to:
(a) Defer the implementation of the e-Wallet scheme by 6 months i.e., upto 01.10.2018; and
(b)Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for a further 6 months i.e., upto 01.10.2018.
4. In a related development which would benefit the exporters, the GST Council reviewed the progress in grant of refunds to exports of both IGST and Input Tax Credit. The Council appreciated that the pace of grant of IGST refund has picked up.
5. Thereafter, the GST Council directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.
6. For merchant exporters a Special Scheme of payment of GST @ 0.1% on their procured goods was introduced.
7. Domestic procurement made under Advance Authorization, EPCG and EOU Schemes were recognized as ‘deemed exports‘ with flexibility for either the suppliers or the exporters being able to claim a refund of GST/IGST paid thereon. All these avenues were made available upto 31.03.2018.
8. A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.
9. Another major recommendation of the Council include deferment of the liability to pay tax on reverse charge basis till 30.06.2018. Meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade & industry.
10. Another major recommendation of the GST Council was relating to Grievance Redressal Mechanism.The GST Council in its 26th Meeting today tasked the GST implementation Committee (GIC) with the work of redressing the grievances caused to the taxpayers arising-out of IT glitch.
11. The GST Council in its 26th Meeting made recommendations based on Data Analytics. The GST Council was apprised that CBEC and GSTN have started detailed data analytics across a number of data sets available with them.
12. The outcome of preliminary data analysis revealed interesting insight that it has emerged that there is variance between the amount of IGST & Compensation Cess paid by importers at Customs ports and input tax credit of the same claimed in GSTR-3B.
13. Outcome of preliminary Data Analysis also revealed interesting insight that there are major data gaps between self-declared liability in FORM GSTR-1 & FORM GSTR-3B. It was deliberated that this information may be further analysed and adequate action may be initiated accordingly.
14. Another major recommendation of the Council include suspension of the provisions for deduction of tax at source (TDS) under Section 51 of the CGST Act and collection of Tax at Source (TCS) under Section 52 of the CGST Act till 30.06.2018.
15. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked-out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.
16. 26th Meeting of the Goods & Services Tax (GST) recommended the introduction of e-way Bill for Inter-State movement of goods across the country from 01st April 2018.
17. For Intra-State movement of goods, e-way Bill System will be introduced w.e.f. a date to be announced in a phased manner but not later than 01st June, 2018
18. In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods.Movement of goods on account of Bill-To-Ship-To supply will be handled through the capturing of place of despatch in PART-A of e-way bill.
The councils decision to suspend the provisions for deduction of tax at source (TDS) under Section 51 of the CGST Act and collection of Tax at Source (TCS) under Section 52 of the CGST Act till 30.06.2018 is a step in retrograde. Why cant this provision of the Act be implemented forthwith? Can any body please throw light on this?
until Stupid Arun as GST chairman GST will not get implement 100%, just kick out him form FM and GST council
When excess cash ledger refund will done
When will GST be implement for Petroleum products, implement Single return and allow Tax Payers to correct the anomalies in the returns already filed.
Sir,
Sub:IGST REFUND EXPORTS LUT METHOD
WE HAVE IMPORTED RAWNUTS AUG 2017- (3B FILED & GSTR 1 FILED)EXPORTED KERNELS NOV 2017.refund application filled seed igst refund claim NIL. (3B FILED&GST R1 FILED)how did get this IGST REUND.
The GSTN should come out with a single return format for suggestions of professionals, trade and industry to avoid multiple filing of returns and to avoid confusion in due dates and data to be filled etc.
Not impressed with outcome.
Still the implementation of E-way bill mechanism is going to be headache for Govt.
No clarity on Refund of GST in the case of export of service.
Just the council deciding on modalities and extending dates does’t serve purpose.It shows Govt inability to implement much talked about GST. They should invite suggestion and ideas by the trade & industry, and GSTIN holder who wish to contribute to bring the GST into reality, across India .
good.
HIGHLIGHTS OF THE MEETING HELPS GST P’S IN PARTICULAR AND TAX PAYERS AT LARGE.
very Well