The objective of this document is to summarize all the updates of GST (Notifications, Circulars, other amendments and updates) in one place. 2 Central tax notifications, 1 Integrated tax notification and 4 Central tax circulars were issued during the month Feb’19. And also the council has approved the new GST rates for the real estate sector in 33rd meeting. The same are being summarized below.
I. Notification No. 8/2019_Central tax dated 08th Feb.2019:
1. Notification No.08/2019 was issued to extend the due date for filing GSTR-7 (Return for TDS) for Jan’19 from 10th Feb’19 to 28th Feb’19 to 28th Feb’19.
II. Notification No. 9/2019_Central tax dated 20th Feb.2019:
Notification No.09/2019 was issued to extend the due date for filing GSTR-3B for Jan’19 from 20th Feb to
1. Feb.19 for Jammu & Kashmir
2. Feb.19 for the remaining states
III. Notification No. 2/2019_Integrated tax (Rate) dated 04.Feb.2019:
Since the definition of exports and the Sec 54 of the CGST act have been amended to include the supplies to Nepal and Bhutan under definition of Exports, the Notification No.02/2019 was issued to rescind the exemption entry 10D (the exemption of IGST, for the supplies made to Nepal & Bhutan) of the Notification no.9/2017 dated 28th Jun’17. 2.0
I. Circular No. 88/07/2019 Central Tax dated 01.02.2019:
- Below referred circulars were amended to make the necessary changes in accordance with the amendments in the act:
- Circular No. 8/8/2017_04.10.2017_”Master circular relevant for the export procedures and refunds” was amended in view of the amendment allowing realization of export proceeds in INR, wherever allowed by the RBI. [2(6) of IGST act].
- Circular No. 38/12/2018_26.03.2018_”Clarification on issues related to Job Work” was amended to in view of the amendment carried empowering the Commissioner to extend the period for return of inputs and capital goods from the job worker and also the RCM on services received from un-registered job workers. [9(4) and 143 of CGST act.]
- Circular No. 41/15/2018_13.04.2018_”Procedure for interception of conveyances for inspection of goods in movement…………” was amended to in view of the amendment carried out extending the time limit from 7days to 14 days for owner/transporter to pay tax/penalty for seized goods. [Sec 129 of the CGST act].
- Circular No. 58/32/2018_dated 04.09.2018 “Recovery of arrears of wrongly availed CENVAT credit under the existing law and inadmissible transitional credit” was amended to streamline the modes of recovery. Earlier, it was suggested to make the reversals in table 4B of the GSTR-3B but now the previous suggestion was ruled out and specified that all such payments shall be made through FORM DRC-03.
- Circular No. 69/43/2018_26.10.2018 “Processing of Applications for Cancellation of Registration submitted in FORM GST REG-16” was amended in view of notifying the “CGST (Amendment) Act, 2018”.Earlier it was mentioned that the amendment is yet to be notified, the same has been removed. [Sec 29 of CGST act.]
II. Circular No. 89/08/2019 Central Tax dated 18.02.2019:
- After observing that the majority of tax payers are not reporting details in Table 3.2 of GSTR-3B, the circular has been issued to clarify that the tax payers has to fill the details of supplies to unregistered dealers mandatorily in table 3.2 of GSTR-3B and also in table 7B of GSTR-1.
- It is mentioned that such disclosure is essential for distributing the funds to respective states.
- It is also clarified that the non-compliance would lead to levy of penalties u/s 125 of the act.
III. Circular No. 90/09/2019 Central Tax dated 18.02.2019:
- After observing that few of the tax payers (majority of banking, insurance and telecom sectors) are not specifying the Place of supply (POS) for the IGST invoices in accordance with Rule 46(n), the circular has been issued to clarify that the POS and name of the state as a mandate.
- It is also clarified that the non-compliance would lead to levy of penalties u/s 122 or 125 of the act.
IV. Circular No. 91/10/2019 Central Tax dated 18.02.2019:
- In Circular 46/2017_Customs_Dated 24.Nov.17, it was clarified that,
- “IGST” shall be paid on supplies made during the period for which the goods are in customs bonded ware house and
- “Customs+IGST” shall be paid at the time of removal from customs bonded warehouse.
- In Circular 3/2018_IGST_Dated 25.May.18, it was clarified that, considering the amendments in the Customs Tariff act,
- There shall not be any tax required to be paid on supplies made during the period for which the goods are in customs bonded ware house and
- “Customs+IGST” shall be paid at the time of removal from customs bonded warehouse
- This shall be applicable w.e.f. 01.Apr.18.
- Further, the department has noticed that, from Jul’17-Mar’18,
- Many assesses considered supplies made during the period for which the goods are in customs bonded ware house as Intra state and
- There was no provision in GSTR-1 for changing POS for such B2B supplies. If the supplier and recipient are in same state, it was considered as Intra-state sales.
- Therefore, the department hereby clarified that, such errors if any, made during the period Jul’17-Mar’18 shall be condoned and considered as proper compliance of the law.
- It would also imply that, if any person missed to pay tax on such supplies, same shall be paid. However, many experts are of the opinion that the tax shall not be liable for the supplies made during the period for which the goods are in bonded warehouse.
3.0 33rd GST Council meeting updates:
I. GST on Residential properties
- The proposed GST rate for the residential flats are as followed:
- 1% for the Affordable housing
- 5% for the others
- For qualifying as “affordable housing” below 2 conditions should be satisfied:
- Carpet area of up to 90 Sqm in non-metropolitan cities/towns and 60 Sqm in metropolitan cities and
- Value < 45Laks in both Metro/Non metropolitan cities
- Bengaluru, Chennai, Delhi NCR (limited to Delhi, Noida, Greater Noida, Ghaziabad, Gurgaon, and Faridabad), Hyderabad, Kolkata and Mumbai (whole of MMR) shall be considered as Metropolitan cities.
- Intermediate tax on development right, such as TDR, JDA, lease (premium), FSI shall be exempted only for such residential property on which GST is payable.
- Complete details of the scheme shall be approved in the next council meeting
- Effective date shall be 01.Apr.19.
- The existing rates shall continue for the commercial projects
- The taxation on betting and lotteries shall be taken up in the future council meetings.
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This document had been written to provide updates under GST in a simple manner. The author shall not be responsible for any of the decision made on the basis of the contents of this document.