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GST E-Way Bill Draft Rules issued

 

Greetings!

GST - CBEC has issued further Draft Rules

The following further draft Rules have been made available

 

1. Accounts and Records

2. Advance Ruling

3. Appeals and Revision

 

Click to download the GST Draft Rules

Migration to GST Mandatory for Service Tax Return

CBEC has required the Service Tax Assessees to confirm migration of registration to GST to enable filing of service tax returns due to be filed by 25th April,2017.

 

Click to view communication of CBEC requiring confirmation of migration of registration to GST

 

Assessees who have initiated migration of registration to GST are required to enter details of their user name entered in GST Portal for migration of registration to GST.

 

For carry forward of input credits from existing taxation system to GST, it is essential to migrate registration to GST on or before 30/04/2017.

Date : April 20, 2017

 

GST - CBEC has issued Draft Rules on E-Way bill

Central Board of Excise and Customs (CBEC) has issued draft rule on Electronic way bill which requires registered entities to upload in a prescribed format on the GSTN website the details of movement within a state or outside the State of any goods of a value exceeding Rs. 50,000.

 

The entire process requires participation by the supplier, the transporter and the recipient, if he is a registered person.

 

Click to download the GST Draft Rules on E-Way Bill.

 

We are of the view that initially the requirement of E-Way Bill may first be applied to sensitive, evasion-prone commodities instead of making it mandatory across all commodities as small entities with poor internet connectivity will find difficult to comply.

 

Click to view note on compliance required under the GST draft rules on E-Way bill

 

GST - Draft Rules on Assessment and Audit issued by CBEC

Central Board of Excise and Customs (CBEC) has issued draft rule on Assessment and Audit.

 

Click to download the GST Draft rules on Assessment and Audit.

 

However public comments on these are invited by April 21. The GST council will finalise the draft rules in their meeting in May, 2017.

 

GST - Revised Draft Rules on filling of Returns issued

Central Board of Excise and Customs has made available in its website the revised draft rule on filing of Returns.

 

Click to download the revised GST draft rules on filing of Returns.

Date : April 15, 2017.

 

President gives Assent to GST Legislation

The President of India has given assent the following legislations on Goods and Services Tax (GST), paving the way for early roll out of GST.

 

1. The Central Goods and Services Tax Act, 2017

2. The Integrated Goods and Services Tax Act, 2017

3. The Union Territory Goods and Services Tax Act, 2017

4. The Goods and Services Tax (Compensation to States) Act, 2017

 

The Acts have been published in the Gazette of India on April 12, 2017.

 

Click to download the Acts

 

The next legislative agenda is for the States to pass the State Goods and Service Tax Act of the respective States.

 

As already announced the GST Council is scheduled to meet on 18th and 19th May 2017 in Srinagar when the draft Rules already circulated it is expected to be approved. Besides the GST Council would also be discussing the fitment of Goods and Services in the agreed slab rate of tax of 5%, 12%, 18% and 28%, which the officials are working on

Date : April 13, 2017

 

Rajya Sabha Passes GST Bills

The following bills were passed by the Rajya Sabha without amendments after an eight hour long debate

1. The Goods and Services Tax (Compensation to States) Bill, 2017

2. The Integrated Goods and Services Tax Bill, 2017

3. The Union Territory Goods and Services Tax Bill, 2017

4. The Central Goods and Services Tax Bill, 2017

Date : April 6, 2017

 

Revised Draft Rules and FAQs made available

The following revised GST Rules have been made available for feedback

1. GST draft Composition Rules

2. GST draft Valuation Rules

3. GST draft Transition Rules

4. GST draft ITC Rules

5. GST draft Revised Invoice Rules

6. GST draft Revised Payment Rules

7. GST draft Revised Refund Rules

8. GST draft Revised Registration Rules

9. GST Draft Return Rules (Originally released in September 2016)

Click to download the draft Rules

The Rules, after considering the feedback, would be considered and approved by the GST Council in the next meeting of the GST Council scheduled to be held on 18th and 19th May 2017 in Srinagar.

 

Revised FAQs on GST

The Central Board of Excise and Customs also released the revised Frequently Asked Questions on GST based on the Bill passed by the Lok Sabha.

Click to download Revised FAQs on GST

Date : April 3, 2017

 

GST Council – Meeting on 31/03/2017

Further Draft Rules approved

In the 13th meeting of the GST Council held on March 31, 2017, the Rules relating to Input Tax Credit, Valuation, Composition and Transition were approved.

Earlier the draft rules relating to Invoices, Returns, Refunds, Registration and Payments had been approved and it is reported that modifications in these Rules consequent to amendment to the legislation was also discussed.

The draft of the now approved relating to Input Tax Credit, Valuation, Composition and Transition is expected to be made available in the public domain for feedback.

It is learnt that all the draft Rules would be finally approved in the next meeting of the GST Council scheduled to be held on 18th and 19th May 2017 in Srinagar after considering the feedback from the stakeholders.

 

Will GST be implemented on July 1, 2017?

One major activity remaining to be discussed and approved by the GST Council is the fitment of goods and services in the agreed slab rate of tax of 5%, 12%, 18% and 28%, which the officials are working on.

This is expected to be discussed in the next meeting of the GST Council scheduled to be held on 18th and 19th May 2017. Hopefully if there is consensus, this will get approved.

Assuming that it is approved in the next meeting, with hardly 40 days left for the scheduled Roll Out on July 1, 2017, the tax administration as well as the Trade and Industry will not have sufficient time to understand the impact of the rates on their business and configure their software.

It therefore appears that July 1, 2017 Rollout is less likely and also not desirable without providing sufficient time to the stakeholders to be prepared.

Date : March 31, 2017

 

GST Bills passed in Lok Sabha

The following bills introduced in Lok Sabha on 27/03/2017 have been passed in the Lok Sabha.

1. The Goods and Services Tax (Compensation to States) Bill, 2017

2. The Integrated Goods and Services Tax Bill, 2017

3. The Union Territory Goods and Services Tax Bill, 2017

4. The Central Goods and Services Tax Bill, 2017

Click to download the Bills

The bills would be considered by the Rajya Sabha in the week beginning 3rd April, 2017. Since the bills have been passed in the Lok Sabha as Money Bills, any amendments by the Rajya Sabha will not the binding on the Lok Sabha.

The CGST and IGST Bills have been passed as applicable to the whole of India except Jammu and Kashmir since Article 370 of the Constitution grants special status to the States and only after the Jammu and Kashmir State legislature approves the applicability of the two bills to the State, the Parliament can legislate applicability of the two bills to the State.

Date : March 30, 2017

 

GST – working groups formed to to address concerns of the Trade and Industry

CBEC has setup working groups to address issues related to banking, financial services and insurance sector, telecommunication, exports, information technology, transport and logistics, textiles, micro, small and medium enterprises, oil and gas, gems and jewellery, and government services.

Issues related to procedure and rate structure will also be studied by the groups which have been required to submit the reports by April 10, 2017.

Click to view CBEC circular on setting up of working groups.

 

Facility to check Registration Status under GST

Facility is now provided in www.gst.gov.in, the website of Goods and Service Tax to check registration status of all those taxpayers who have enrolled for GST.

Facility to search Statewise either based on Registration Number or Provisional Id or Permanent Account Number is provided.

The link is https://services.gst.gov.in/services/check-registration-status

 

GST Council – Meeting on 16/03/2017

Draft SGST and UTGST Bills approved

The GST Council at its meeting on March 16, 2017 approved the final draft of the State Goods and Service Tax Bill (SGST) and Union Territory Goods and Service Tax Bill (UTGST).

In earlier meetings the GST Council had approved the final draft of the Central Goods and Service Tax Bill (CGST) and Integrated Goods and Service Tax Bill (IGST) and GST Compensation Bill.

This completes the approval of all five legislation. The CGST, IGST, UTGST and GST Compensation Bills have to be approved by the Parliament. It is expected that the four bills would be approved in this session of Parliament concluding on April 12, 2017.

It is also expected that the State legislatures would also expedite the approval of the SGST Act of the respective States.

Briefing the press Finance Minister Arun Jaitley stated that in the next meeting scheduled on March 31, 2017 the GST Council would take up for consideration the Rules relating to Composition of Tax, Valuation, Input Tax Credit and Transition.

Earlier the rules relating to Invoices, Returns, Refunds, Registration and Payments had been approved and any modifications in these Rules consequent to amendment to the legislation would also be discussed in the meeting on March 31, 2017.

The GST Council had also capped the Cess at 15% on certain Sin Goods and Ultra Luxury Goods like luxury car, aerated beverages, pan masala and tobacco. Therefore it appears that Cess of upto 15% may be levied in addition to the maximum combined slab rate of 28% so as to levy the same rate of tax as at present on these goods.

Finance Minister Arun Jaitley stated that the fitment of goods and services in the agreed slab rate of tax of 5%, 12%, 18% and 28%, which the officials are working on, would be taken up in the meeting of the GST Council in April, 2017.

Implementation of GST appears to be on course and is most likely to be implemented from July 1, 2017.

Articles

We are pleased to present the following articles by Sri.G.Viswanathan, Indirect Tax Consultant.

Works Contract under GST

In this article CA Viswanathan lucidly explains the relevant provisions in Model GST Law relating to works contract transactions and also opines that the value of free supply of materials by the principal could not be included to the transaction value in a Works Contract for the purpose of GST levy.

Click to view Works Contract under GST

Input Tax Credit in GST and Credit Mechanism

In this article CA Viswanathan outlines in an easy-to-understand language, the basic principles of input tax and the credit mechanism as proposed in Model GST Law.

Click to view Input Tax Credit in and Credit Mechanism

Date : March 16, 2017.

 

GST Council – Meeting on 04/03/2017

Draft CGST and IGST Bills approved

The GST Council at its meeting on March 4, 2017 approved the final draft of the Central Goods and Service Tax Bill (CGST) and Integrated Goods and Service Tax Bill (IGST).

In an earlier meeting the GST Council had approved the draft of the GST Compensation Bill. It is reported that the draft State Goods and Service Tax Bill (SGST) and a draft Union Territory Goods and Service Tax Bill (UTGST) would be considered in the next meeting of the GST Council scheduled on March 16, 2017.

Briefing the press after the meeting of the GST Council on March 4, 2017, Shri. Arun Jaitley stated that the draft of the GST Compensation Bill, CGST Bill and IGST Bill would be tabled in the Parliament soon after final approval of all legislation by the GST Council so as to pass the Bills before the Parliament session concludes on April 12, 2017. Once SGST draft bill is approved by the GST Council, the State Legislatures would begin the process of approval of SGST Bills.

The next major activity is Fitment of Goods/Services in the various agreed slab rates, which would be taken up by the GST Council soon after the officials have completed the activity of Fitment of Goods/Services in the various agreed slab rates. This may happen in April 2017.

Allaying the apprehension in press reports of the combined CGST + SGST could be 40%, it was clarified that there is no change in the decision to have 4 slab rates (5%, 12%, 18% and 28%) and Cess on certain demerit goods and that the 40% rate is only an enabling provision, should there be a need to increase the rate of tax at later date.

Shri. Arun Jaitley also stated that the optimistic date of rollout of GST would be July 1, 2017.

Date : March 3, 2017.

 

CBEC launches GST APP

CBEC launches official Mobile App (CBEC GST MOBILE APP) for GST. The mobile application can be downloaded free of cost on Android platforms. iOS version would be available soon.

In order to familiarize taxpayers and to ensure a smooth transition to GST Goods and Services Tax, CBEC has published an official application that provides information on migration to GST, draft GST laws and rules, FAQs, Latest Updates etc. Users can also provide feedback and contact CBEC Mitra Helpdesk using the application.

Click to view the link to GST Mobile App https://play.google.com/store/apps/details?id=com.cbec.gst&hl=en

Click to view the Press Note on GST Mobile App.

Duty Drawback under GST Framework– Suggestions invited

Drawback division of CBEC has invited suggestions on All Industry Rates of Duty drawback for exports under the GST Framework.

Click to view communication dated 23/02/2017 inviting Suggestions on All Industry Rates (AIRs) of duty drawback under the GST framework

Date : February 27, 2017

 

GST Council – Meeting on 18/02/2017

GST Compensation Bill Approved

Briefing the press after the meeting of the GST Council on 18/02/2017, Shri. Arun Jaitley stated that the draft of the GST Compensation Bill was formally approved and would be tabled in the next session of the Parliament scheduled to be held from 9th March, 2017 to 12th April, 2017.

The GST Council is also reported to have discussed and clarified certain issues on legal drafting of the draft CGST / SGST and IGST Bills.

The final legally vetted draft will be placed before the GST Council in the next meeting scheduled on 4th and 5th March, 2017. Shri. Arun Jaitley stated that one more meeting would be required to clear specific legal issues in the draft legislation.

The officials will then work on fitment of specific goods in the agreed slab rates. Shri. Arun Jaitley stated that the slab rates and then would be discussed by the GST Council.

It appears that the progress is on course for the scheduled GST rollout target of July 1, 2017. Besides the rate of tax schedule for Goods and Services, in so far as the broad contours of the legislation is concerned, what remains is vetting of proper legal drafting and procedural issues like Appellate Jurisdiction, mechanism to implement anti profiteering provisions, etc.

Hopefully the CGST and IGST Bills would also be approved by the Parliament in the ensuing session and the SGST legislation would be approved by the respective State legislature soon.

So it is time for trade and industry to Get Set Go to be ready by July 1, 2017.

Image courtesy: NDTV PROFIT
Date : February 18, 2017

GST Council – Consensus on Dual Control

Consensus is reached on the issue of dual control in the meeting of the GST Council on 16th January,2017, the Finance Minister Arun Jaitley announced.

The division of Audit and Assessment responsibility between the Central and State Government would be:

State Authorities

90% of the assessees with Annual Turnover of less than Rs.1.5 Crores
50% of the assessees with Annual Turnover of more than Rs.1.5 Crores

Central Authorities

10% of the assessees with Annual Turnover of less than Rs.1.5 Crores
50% of the assessees with Annual Turnover of more than Rs.1.5 Crores

The division of assessees between the two authorities to be through a computer programme.

Intelligence based enforcement would be by both State and Centre.

Sri Arun Jaitley also stated that Power to levy and collect IGST is with central government. However by a special provision in law, States would be empowered to collect IGST and that where there is a contentious issue like Place of Supply of Goods / Services involving different States, the assessment would be by the Central Authorities.

He also stated that the area of upto 12 nautical miles from the Coastline is part of Union Government but as per convention States would be empowered to levy tax.

Realistic date of Implementation

What is still to be worked on are

a) Final approval of the GST Draft Laws incorporating the amendments decided upon by the GST Council

b) Fitment of Goods/Services in the various agreed slab rates which is expected to be taken up after the final draft law is finalized.

c) Decision on Appellate jurisdiction

d) Modifications to GSTN to incorporate the finally approved law

e) Approval by the Parliament and State Legislatures.

On a realistic date of implementation of GST, Sri Arun Jaitley stated that the consensus is July 1,2017.

The next meeting of the GST Council is scheduled on 18th February,2017 to approve the finally revised draft law.

With so much more ground to be covered, it appears to us that meeting the revised deadline would be challenging.

Date : January 16, 2017

GST Enrolment for existing Central Excise / Service Tax Assessees

All existing Central Excise and Service Tax assessees will be migrated to GST starting 7th January 2017. The Provisional ID and Password of the assessees is provided by CBEC in https://www.aces.gov.in/.

Click to download circular of CBEC on Migration of Registration to GST.

Click to download GST Migration Process.

Please note that those who are registered under State VAT Act and are also registered under Central Excise or Service Tax, the migration would be using the provisional ID provided by State VAT Authorities.

The provisional ID provided in https://www.aces.gov.in/

The last date is 31st January,2017

Migration of Excise /Service Tax Assessees

GSTN has announced the revised Enrolment Schedule for existing Service Tax and Central Excise Assessees who are not registered under the State VAT Act. The revised schedule is

Enrolment of Taxpayers who are registered under Central Excise Act but not registered under State VAT

05-01-2017

31-01-2017

Enrolment of Taxpayers who are registered under Service Tax Act but not registered under State VAT

09-01-2017

31-01-2017

New registration under VAT/Service Tax/Central Excise after August 2016

01-02-2017

20-03-2017

GSTN has also made available % of enrolment in different States.

Click to view the revised Enrolment Schedule

Click to view Step by Step Guide for GST Enrolment for existing Central Excise / Service Tax Assessees

Date : January 4, 2017

 

GSTN - Migration of Registration GST System Portal

Here is the link to the portal for migration of registration of existing assessees of Central Excise, Service Tax and VAT.

https://www.gst.gov.in/

The process is

• Your provisional ID will come from your tax officer

• Update profile information and upload documents

Enrolment is taken up in a staggered manner. At present migration of dealers registered under the State VAT Act is facilitated.

GST registration - Enrolment Plan of States

The schedule of the enrolment activation drive for states as in GSTN website is given below.

States Start Date End Date
Puducherry, Sikkim 08/11/2016 23/11/2016
Gujrat, Maharashtra, Goa, Daman and Diu, Dadra Nagar Haveli, Chhattisgarh 14/11/2016 29/11/2016
Odisha, Jharkhand, Bihar, West Bengal, Madhya Pradesh, Assam, Tripur, Meghalaya, Nagaland, Arunachal Pradesh, Manipur, Mizoram 30/11/2016 15/12/2016
Uttar Pradesh, Jammu and Kashmir, Delhi, Chandigarh, Haryana, Punjab, Uttarakhand, Himachal Pradesh, Rajasthan 16/12/2016 31/12/2016
Kerala, Tamil Nadu, Karnataka, Telangana, Andhra Pradesh 01/01/2017 15/01/2017
Service Tax Registrants 01/01/2017 31/01/2017
Delta All Registrants (All Groups) 01/02/2017 20/03/2017

Click to download Enrolment Plan of States

State Circulars on migration of assessees to GSTN

Several States have initiated the facilitation for migration of existing assessees registered under the VAT Act of the respective States.

Click to view the State Circulars

It is requested in the portal to complete the enrolment during the specified dates. However, the window will be open till 31/01/2017 for those who miss the chance.

This portal has detailed FAQs and User Manual on Using the GST Common Portal.

Earlier GSTN had released FAQs on the procedure for Enrolment of the Existing Taxpayer on the GST System Portal.

Migration of existing assessees

Date : November 8, 2016