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GST – President’s assent to implementation of GST in J & K.

It is reported that President Pranab Mukherjee has given his assent to the implementation of GST in Jammu & Kashmir on the recommendation of the state cabinet.

The Legislative Assembly of Jammu & Kashmir had on July 5, 2017 passed a resolution to implement GST in the state.

GST – MRP labeling of goods in stock manufactured prior to July 1,2017

The Department of Consumer Affairs has allowed change in MRP on unsold stock as on June 30, 2017 vide Communication Reference WM-10(31)/2017 dated July 4, 2017.

 

Manufacturers or packers or importers of pre-packaged commodities may declare the change retail sale price (MRP) on the unsold stock manufactured/ packed/ imported prior to 1st July, 2017 after inclusion of the increased amount of tax due to GST if any, in addition to the existing retail sale price (MRP), for three months. Declaration of the changed retail sale price (MRP) shall be made by way of stamping or putting sticker or online printing, as the case may be, after complying with the following conditions:

(i) The difference between the retail sale price originally printed on the package and the revised pride shall not, in any case, be higher than the extent of increase in the tax if any, or in the case of imposition of fresh tax, such fresh tax, on account of implementation of GST Act and Rules.

(ii) The original MRP shall continue to be displayed and the revised price shall not overwrite on it.

(iii) Manufacturers or packers or importers shall make at least two advertisements in one or more newspapers in this regard and also by circulation of notices to the dealers and to the Director of Legal Metrology in the Central Government and Controllers of Legal Metrology in the States and Union Territories, indicating the change in the price of such packages.

It is also clarified that ‘for reducing the Maximum Retail Price (MRP), a sticker with the revised lower MRP (inclusive of all taxes) may be affixed and the same shall not cover the MRP declaration made by the manufacturer or the packer, as the case may be, on the label of the package’.

Use of unexhausted packaging material/wrapper has also been allowed, after making the necessary corrections.

This is permitted for the period till 30th September 2017.

Click to download the Communication Reference WM-10(31)/2017 dated July 4, 2017 of the Department of Consumer Affairs

Click to download the Press Release on change in MRP on unsold stock prior to implementation of GST

GST – Tax Refund Scheme of units located in Central Excise Exempt Zones

Certain manufacturing units located in states like Himachal, Uttarakhand, Jammu & Kashmir and north eastern states had been availing of exemption from Central Excise Duty on manufactured goods.

 

With the implementation of GST the exemption does not continue and it was announced that refund scheme with budgetary support would be extended by the Central Government to these units for the unavailed period of financial incentives.

It is now learnt that a draft scheme has been formulated which provides that

Ø  The eligible unit shall first utilize the input tax credit of Central Tax or Integrated tax and the balance liability if any shall be paid through debit in cash ledger.

Ø  Budgetary support would be given to the extent of

(a) 58 % of the CGST paid through debit in cash ledger.

(b) 29% of the IGST paid through debit through Cash ledger.

The 58% / 29% refund of CGST / IGST on intra State / Inter State sale respectively is based on the share of the revenue that accrues to the Central Government.

We shall update soon after the notification is issued.

GST – Proper officer for furnishing Bond/LUT by exporters

Rule 96A of the Central Goods and Services Tax Rules, 2017 requires any registered person availing the option to supply goods or services for export without payment of integrated tax shall furnish, prior to export to furnish a bond or a Letter of Undertaking. This bond or Letter of Undertaking is required to be furnished in FORM GST RFD-11 on the common portal. Further, Circular No. 26/2017- Customs dated 1st July, 2017 has clarified that the procedure as prescribed under rule 96A of the said rules requires to be followed for the export of goods from 1st July, 2017.

CBEC has vide Circular No. 2/2/2017-GST dated July 4,2017 clarified that since furnishing of FORM GST RFD-11 on the common portal is not yet enabled, the Bond/Letter of Undertaking required to be furnished under rule 96A of the said rules may be furnished manually to the jurisdictional Deputy/Assistant Commissioner instead of the jurisdictional Commissioner.

Click to download Circular No. 2/2/2017-GST dated July 4,2017

GST – DGFT Trade Notice on Changes in FTP – 2015-2020

DGFT has vide Trade Notice 11/2018 dated June 30,2017 notified chapter wise details of changes in Foreign Trade Policy 2015-20 and Foreign Trade procedures 2015-20.

Briefly the chapter wise changes relates to utilization of duty credit scrips, imports under advance authorization, changes relating to domestic procurement, DTA Clearance and interunit transfer relating to Export Oriented Units(EOU)/Electronics Hardware Technology Park (EHTP)/, Software Technology Park (STP)/ or Bio-Technology Park (BTP), besides changes in other chapters – deemed export drawback and TED Refund.

Click to download DGFT has vide Trade Notice 11/2018 dated June 30,2017

GST - Clarification on meaning of goods sold under Registered Trademark

There had been confusion and doubts with regard to the meaning of registered brand name for the purpose of GST.

Certain Goods such as paneer, natural honey, wheat, rice, pulses and cereal flours are exempt under GST. However, if these items are packaged in ‘unit container’ that carries a registered brand name, it will attract 5% GST.

The finance ministry has clarified that GST will not apply on products that are not registered under the Trade Marks Act.

It is clarified that “Unless the brand or trade name is actually on the Register of Trade Marks and is in force under the Trade Marks Act, 1999, CGST rate of 5% will not be applicable on the supply of such goods,”.

Click to download press release on the meaning of registered brand name in the context of GST rates

Date :07-07-2017

GST - Export under Bond / LUT – Revised Procedure

CGST Rule 96 A has been notified vide Notification No. 15/2017 – Central Tax dated 1st July, 2017 requiring furnishing of Bond/ LUT, for export without payment of IGST. The bond is to be furnished prior to export.

Circular No. 26/2017-Customs dated the 1st July, 2017 detailing the revised Export procedure / refund procedure and sealing of containerized cargo. The revised self sealing procedure is effective from 01/09/2017.

There is no clarity on whether LUT would be accepted now since the notification specifying the conditions and safeguards under which a Letter of Undertaking may be furnished in place of a bond, is not yet issued.

As regards export invoices, the description of invoices should be SUPPLY MEANT FOR EXPORT UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF or SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST.

The details of the relevant export invoices contained in FORM GSTR-1 shall be transmitted electronically by the common portal to the Customs system and the said system shall in turn electronically transmit back to the common portal a confirmation that the goods covered by the said invoices have been exported out of India.

Click to view/download text of Rule 96A

Click to download Circular No. 26/2017-Customs dated the 1st July, 2017

Click to download format of Bond / LUT

Image courtesy: internationalshippingusa
Date : 04-07-2017

GSTN Excel Utility to file GSTR 1

GSTN has made available an excel utility under download in www.gst.gov.in, an excel utility to prepare GSTR 1.

For the benefit of our viewers we have made available the utility for download.

Please click to download GSTN’s Excel utility to prepare GSTR-1.

CGST Consolidated Rules – 01-07-2017

CGST Rules,2017 initially Notified vide Notification No. 3 /2017-Central Tax (Dated 19th June 2017) was further amended by Notification No. 7/2017-Central Tax (Dated 27th June 2017), Notification No. 10/2017-Central Tax (Dated28th June 2017) and Notification No. 15/2017-Central Tax (Dated 1st July 2017).

CBEC has made available the consolidated Rules,2017 as amended upto July 1,2017.

Click to download CGST Consolidated Rules – 01-07-2017

GST formally launched

GST was formally launched by the President of India and Prime Minister of India in a formal function in the Central Hall of Parliament on July 1,2017

Date: 02-07-2017

GST – All Set for launch at 00.01 hour of July 1, 2017

GST would roll out from July 1,2017 in the backdrop of clamor, though feeble, of trade and industry being not fully prepared.

 

Though there would be glitches and practical difficulties in understanding the nuances of GST, implementation of GST is a monumental achievement and therefore setting aside all reservations all of us should join together to welcome GST.

Let us welcome GST!

How to face GST ( Fun Video)

If you are one of those who apprehend how to handle GST, here is a fun video to relax and work around to implement GST in your business.

Very simple. Isn’t it !
Relax, let us embrace GST learn GST together!

Guidance Note on Imports and Exports under GST

CBEC has released the Guidance Note for Importers and Exporters, under GST.

There had been lot of apprehensions on whether customs cess would apply on IGST as well as was the case with CVD under the existing law. It is clarified in this note that IGST would apply on base price+ customs duty + customs cess. This would be a huge relief to importers.

Click to download GST -Guidance Note for Importers and Exporters

Date: 30-06-17

GST Rate of Tax Notifications

Notifications under CGST Act, IGST Act and UTGST Act on rate of tax on Goods and Services, certain exemptions, Services liable to compensation cess and Goods and Services liable for payment of GST under reverse charge have been issued.

Click to download the Notifications

Date: 29-06-17

GST@GoI @askGST_GoI – Tweets FAQ

GST@GoI @askGST_GoI, the Official twitter handle of the GoI for queries on GST has made available compilation of 100 tweets as a short FAQ.

Click to download Tweets FAQ

CGST Circular on Proper Officer

Commissioner (GST), Central Board of Excise and Customs has issued circular on Proper officer for provisions relating to Registration and Composition levy under the Central Goods and Services Tax Act, 2017 or the rules made thereunder.

Click to download the CGST Circular

Date: 27-06-17

GST – TDS and TCS implementation postponed

According to a press release, the provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later.

It is further stated that persons who will be liable to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date the respective sections are brought in force.

The persons who were liable to be registered under clause (ix) of Section 24 of the CGST / SGST Act, 2017 (as they were supplying goods or services through electronic commerce operator who is required to collect tax at source under Section 52) will not be liable to register till the provision of Tax Collection at Source is brought under force. In other words, persons supplying goods or services through electronic commerce operator liable to collect tax at source would not be required to obtain registration immediately, unless they are so liable under Section 22 or any other category specified under Section 24 of the CGST / SGST Act, 2017.

Click to download press release on postponement of GST TDS / TCS.

GST – Documentation for imports and exports

Indian Customs EDI System has released the following documents to make GST compliance the shipping bills and Bill of Entry.

1. CHA-Customs Message Exchange - Export Message Format Document Version 2.0 (June,2017)

2. BE Message Exchange - Imports Technical Document Version 2.2 (June,2017)

(Click on respective file to download)

It is brought to be attention of All Exporters /Importers RES Providers that all Shipping Bills are to be field in new format from 00:00 hrs 28.06.2017 and the new Shipping Bill and Bill of Entry format are to be used.

Click to download advisory related to all customs related changes under GST.

GST Registration Window reopens

GST Registration window has reopened for migration of registration and fresh registration as Taxpayer, Tax Deductor, Tax Collector ( E commerce) and GST Practitioner.

 

The GSTN has also set up two call centres – for Taxpayers - 0120-4888999 and for Tax Officials - 0124-4479900.

Though we could connect to the support executive only after more than 5 minutes, the quality of response was good. We called to check if ISD registration is open. The response is that ISD registration has not commenced.

We receive number of mails on issues faced in the Registration process in www.gst.gov.in. We request viewers not to mail us registration related queries but mail to GSTN helpline - helpdesk@gst.gov.in.

SGST Notification

We have presented Notification of Composition Rules and Registration Rules of Andhra Pradesh, Assam, Gujarat and Jharkhand.

Click to view/ download the SGST Notification.

SGST Acts

Though most of the States except Jammu and Kashmir and Kerala have either passed the SGST Act or issued Ordinance, the SGST Acts have not been made available in the public domain.

We have presented SGST Acts of some of the States.

We request viewers and tax administrations to kindly mail the SGST Act and Notifications, not presented in this website.

Date: 26-06-17

GST to be implemented from July 1,2017

Briefing the press after the meeting of the GST Council on June 18, 2017, Union Finance Ministers Shri Arun Jaitley reaffirmed that GST would be implemented from July 1, 2017.

He also announced the formal launch of GST on midnight of 30th June 2017.

 

He stated that West Bengal has issued an Ordinance and that Tamil Nadu would pass the SGST Act on 19th June, 2017. The only other State to Pass SGST Act is Jammu & Kashmir.

We do hope that Jammu & Kashmir would pass the SGST Act and join the main stream on July 1,2017.

Relaxation in filing of Returns

Considering the concerns on the preparedness of Trade and Industry, the GST Council decided to relax the Rules for filing of returns for July and August 2017.

The relaxations are

Ø  The Returns for July and August 2017 would be filed on self assessment by 20th of the following month in Form GSTR 3 B, which will be a summary of Inward and Outward Supplies and the applicable tax is to be paid.

Ø  GSTN would make available the return filing module by 15th July. GSTR 1 and GSTR 2 will have to be filed for July 2017 by 5th September and for August 2017 by 20th September 2017, No late fee or penalties would be levied.

Ø  The timelines for filing of Returns would be strictly adhered to from the return period from September 2017.

Review of Rate of Tax on Goods

The GST Council decided not to review rate of tax now. The Finance Minister stated that any review of rate of tax would be taken up after 3 months.

However the rate of tax on lottery Tickets and Hotel Rooms were announced.

For hotel rooms with tariff between Rs.2,000 and Rs.5,000 the rate of tax would be 18% and rooms with tariff above Rs.7,500 the rate of tax would be 28%. GST on restaurants in these hotels will be 18%, at par with other air-conditioned restaurants.

State-run lotteries will be taxed at 12% of the face value and state authorised lotteries would be taxed at 28%.

Composition Scheme

The threshold limit to opt for composition for North Eastern States is fixed at annual turnover of Rs.50 lakhs. For Uttarakhand and Jammu & Kashmir the threshold limit would be annual Turnover of Rs.75 Lakhs.

Rules for Anti Profiteering Provision

The Rules for  Anti Profiteering Clause have been announced. Shri Arun Jaitley stated that the Anti Profiteering Clause is more of a deterrent.

It is learnt that action under Anti Profiteering Clause would be invoked on specific complaint of profiteering. The proposal as reported is to set up a committee of State and Central Officials who would look into the complaints.

The Anti Profiteering Authority would have powers to to summon a person whose attendance is considered necessary, in line with judicial and would be functional for 2 years from implementation of GST. The Anti Profiteering Body would have powers to direct reduction of price and also decide on the punitive action.  

Click to download Anti - Profiteering Rules.

Rules Approved

The GST Council approved Rules relating to Advance Ruling, Appeal and Revision, Assessment and Audit, Anti Profiteering and Funds Settlement.

Click to download Advance Ruling Authority Rules and Formats, Appeal and Revision Rules and Formats, Assessment and Audit Rules and Assessment Formats and Audit Formats.

E Way Bill Rules   

The final E Way Bill Rules have not been finalized. It is stated that transient rules to be announced. It is likely that the State E Way Bills may be made applicable till then.

It is stated that it would take 3-4 months for GSTN to put in place the necessary hardware and software to administer the E Way Bill Rules, after it is finalized.

Next meeting of the GST Council

The next meeting of the GST Council is scheduled on June 30, 2017.

Date: 19/06/2017