GST Updates Upto 1st December 2017, Latest GST News Dec 2017

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GST Updates December 2017, Latest GST News till 1st December 2017 – GST Act 2017. check latest GST news related to goods and service tax act 2017. The Lok Sabha on 29th March 2017 and the Rajya Sabha on 6th April 2017 cleared four crucial GST Bills i.e. CGST, IGST, UTGST and Compensation Cess Bill paving the way for early rollout of GST.

GST Updates upto December 2017

Changes in GST rate of goods

The CBEC vide Notification No. 41/2017-Central Tax (Rate) dated 14th November 2017 effective from 15th November 2017 reduced GST rates on goods from 28% to 18% on goods falling in 178 headings at 4-digit level (including 4 tariff heading that are partially pruned). After these changes, only 50 items will attract GST rate of 28%

Q- How do we determine the rate of tax in case, if there is change in the tax rates?

Ans. Three important events need to be considered – Date of raising invoice, receipt of payment and completion of supply. If any of the two events occur before the change in rate of tax, then the old rate will apply, else the new rate will apply.

Illustration – Rate of GST on Supply made on or after November 15, 2017 reduced from say 28% to 18% then the tax to be applied on supplies will be as under :

  • Before– Event occurred before November 15, 2017
  • After– Event occurred on or after November 15, 2017
Supply Provided Invoice issued Payment received GST Rate
Before After After 18%
Before Before After 28%
Before After Before 28%
After Before After 18%
After Before Before 28%
After After Before 18%

It may be noted that date of receipt of payment shall be the date of credit in the bank account if such credit in the bank

Clarification on the Insurance services provided by Government

i. Services provided to the Central Government, State Government, Union territory under any insurance scheme for which total premium is paid by the Central Government, State Government, Union territory are exempt from GST under Sl. No. 40 of notification No. 12/2017-Central Tax (Rate);

ii. Services provided by State Government by way of general insurance (managed by government) to employees of the State government/Police personnel, employees of Electricity Department or students are exempt vide entry 6 of notification No. 12/2017-CT(R) which exempts Services by Central Government, State Government, Union territory or local authority to individuals. [Press Release on GST rate changes dated 10th November 2017]

Clarifications on Inter State Movement of Goods Inter

State Movement of Goods not constitute Supply:- To clarify that inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to industry as there are frequent interstate movement of such kind during providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use. Service provided using such goods would in any case attract applicable tax. [Press Release on GST rate changes dated 10th November 2017]

UIN of Foreign Diplomatic Missions/ Suppliers

Benefits for Diplomatic Missions/UN organisations: – To lessen the compliance burden on Foreign Diplomatic Missions (FDM)/UN Organisations, a centralised UIN will be issued to every FDM/UN Organisation by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs. [CBEC Press Release dated 10th November 2017]

Exemption to Supply of services having place of supply in Nepal and Bhutan, against payment in Indian Rupees

The Central Government vide Notification No. 42/2017- Integrated tax(Rate) dated 27th October, 2017 made the amendment in the Notification No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017 whereby a new entry have been inserted in the exemption notification, namely, Supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees. [Notification No. 42/2017- Integrated tax(Rate) dated 27th October, 2017]

Clarification on Unstitched Salwar Suits

The Central Board of Excise & Customs vide Circular No. 354/129/2017-TRU dated 27th October, 2017 clarifies the doubts which have been raised regarding the classification of Cut pieces of Fabrics under GST. It has been represented that before becoming readymade articles or an apparel, the fabric is cut from bundles or thans and sold in that unstitched state. The consumers buy these sets or pieces and get it stitched to their shape and size Fabrics are classifiable under chapters 50 to 55 of the First Schedule to the Customs Tariff Act, 1975 on the basis of their constituent materials and attract a uniform GST rate of 5% with no refund of the unutilised input tax credit. Mere cutting and packing of fabrics into pieces of different lengths from bundles or thans, will not change the nature of these goods and such pieces of fabrics would continue to be classifiable under the respective heading as the fabric and attract the 5% GST rate. [Circular No. 354/129/2017-TRU dated 27th October, 2017]

Clarification on movement of goods on approval basis

The Central Board of Excise & Customs vide Circular No. F. No. 10/2017-GST dated 18th October, 2017 clarified that goods which are taken for supply on approval basis can be moved from the place of business of the registered supplier to another place within the same State or to a place outside the State on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.

It is further clarified that all such supplies, where the supplier carries goods from one State to another and supplies them in a different State, will be inter-state supplies and attract integrated tax in terms of Section 5 of the Integrated Goods and Services Tax Act, 2017.

It is also clarified that this clarification would be applicable to all goods supplied under similar situations.

[Refer sub-rule (1) (2) & (3) of rule 55 of the Central Goods and Services Tax Rules, 2017] [Circular No. F. No. 10/2017-GST dated 18th October, 2017]

Clarification on taxability of printing contracts

The Central Board of Excise & Customs vide Circular No. 11/2017-GST dated 20th October 2017 clarifies the taxability of printing contracts e.g. books, pamphlets, brochures, envelopes, annual reports, leaflets, cartons, boxes etc., printed with design, logo, name, address or other contents supplied by the recipient of such supplies.

Taxability in the case of printing of books, pamphlets, brochures, annual reports, and the like, where only content is supplied by the publisher or the person who owns the usage rights to the intangible inputs while the physical inputs including paper used for printing belong to the printer, supply of printing [of the content supplied by the recipient of supply] is the principal supply and therefore such supplies would constitute supply of service falling under heading 9989 of the scheme of classification of services

Taxability in case of supply of printed envelopes, letter cards, printed boxes, tissues, napkins, wall paper etc. falling under Chapter 48 or 49, printed with design, logo etc. supplied by the recipient of goods but made using physical inputs including paper belonging to the printer, predominant supply is that of goods and the supply of printing of the content [supplied by the recipient of supply] is ancillary to the principal supply of goods and therefore such supplies would constitute supply of goods falling under respective headings of Chapter 48 or 49 of the Customs Tariff. [Circular No. 11/2017-GST dated 20th October 2017]

Amendment in CGST Rules

Check all updated rules from following link..GST Rules

Evidences for Claiming Refund under Deemed Export

The Central Government vide Notification No. 49/2017 – Central Tax dated 18th October, 2017 notifies the following as evidences which are required to be produced by the supplier of deemed export supplies for claiming refund, namely:-

  1. Acknowledgment by the jurisdictional Tax officer of the Advance Authorisation holder or Export Promotion Capital Goods Authorisation holder, as the case may be, that the said deemed export supplies have been received by the said holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient Export Oriented Unit that said deemed export supplies have been received by it.
  2. An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed of by him.
  3. An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

[Notification No. 492017 – Central Tax dated 18th October, 2017]

Interest Rates under CGST Act, 2017 prescribed

Central Government vide Notification No. 13/2017-Central Tax, dt. 28-06-2017 has w.e.f 1st July 2017 prescribed the following rates of interest per annum for respective sections as follows:

Sections Section description Rate of interest
50(1) Failure to pay tax or part thereof to the Government within period prescribed 18%
50(3) For undue or excess claim of ITC or reduction of output tax liability 24%
54(12) Interest on withheld refund 6%
56 Interest on delayed refunds 6%
Proviso to 56 Interest on refund arising from order passed by Adjudicating Authority/ Appellate Authority/ Tribunal/ Court and not refunded within 60 days 9%

Further, similar interest rates have been prescribed under IGST Act, 2017 vide Notification No. 06/2017-Integrated Tax, dt. 28- 06-2017 with regards to section 20 of IGST Act, 2017

Number of HSN digits required on tax invoice notified

Central Government vide Notification No. 12/2017-Central Tax, dt. 28-06-2017 has w.e.f 1st July 2017 has prescribed following number of digits of Harmonized System of Nomenclature (HSN) Codes which are required to be mentioned in a tax invoice issued by a registered person having prescribed annual turnover in the preceding financial year:

S. No Annual Turnover in the preceding Financial Year Number of Digits of HSN Code
1 Upto Rs. 1.5 crore Nil
2 More than Rs. 1.5 crore and upto Rs. 5 crores 2
3 More than Rs. 5 crores 4

Similar requirement for mentioning HSN Codes in tax invoice has been prescribed under IGST Act, 2017 vide Notification No. 05/2017-Integrated Tax, dt. 28-06-2017.

Central Goods and Services Tax Rules, 2017

Central Government vide Notification No. 03/2017-Central Tax, dt. 19-06-2017 has notified Central Goods and Services Tax Rules, 2017 w.e.f 22nd June 2017 which includes the following:

Chapter No. Description
1 Effective Date and Definitions
2 Composition Rules
3 Registration Rules

The Rules and the formats provided therein are final to the effect and required to be adhered for respective purposes. Majority of sections of CGST Act, 2017 have been made effective:

Turnover Limit for Composition Levy for CGST revised

Central Government vide Notification No. 08/2017-Central Tax, dt. 27-06-2017 has revised the turnover limit for Composition Levy from Rs. 50 lakhs to Rs. 75 lakhs. Thus, an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs. 75 lakh, may opt to pay, in lieu of the central tax payable by him. However, for the special category states, turnover limit for composition levy will be Rs. 50 lakhs.

Similar provision has also been issued under UTGST vide Notification No. 2/2017-Union Territory Taxdt. 27-06-2017

No registration for dealer supplying only goods and services liable to tax under reverse charge

Central Government vide Notification No. 05/2017-Central Tax, dt. 19-06-2017 has included the persons, who are only engaged in making supplies of taxable goods or services or both, the total tax on which is liable to be paid on reverse charge basis by the recipient of such goods or services or both under section 9(3) of the CGST Act, 2017,inthe category of persons exempted from obtaining registration under the CGST Act.

Click here to know more for GST Applicability

A new Twitter Handle @ask GST

The Department of Revenue, Ministry of Finance, Government of India has opened a new Twitter Handle @askGST_GoI to invite queries from all taxpayers on GST. All taxpayers and other stakeholders are welcome to direct their queries related to GST on the said twitter handle for early resolution and clarification. It may be noted that it is for educational purposes only.

Meeting of GSPs held by GSTN

Goods & Services Tax Network (GSTN) held a Review Meeting with GST Suvidha Providers (GSPs) on 9th June 2017 to Assess Readiness for GST roll-out from 01st July 2017.GSTN also published and explained the method and manner in which the GSPs would be able to integrate with the GST System to be able to submit all the return forms on behalf of their clients and tax payers.

Taxation of Services under Reverse Charge

GST Council has provided list of 12 services on which tax would be liable under Reverse Charge which include services like Services provided by GTA, Legal services to business entities, Radio taxi or Passenger Transport Services provided through electronic commerce operator, services by a director of a company or a body corporate, import of services, etc. As of now, none of the services are covered under partial reverse charge

GST Rates on Services & Goods

You may Find Complete Details for GST Rates on Following links…

GST Enrolment

The GST Registration window will reopen for 15 days from 1st June, 2017 to provide another opportunity to the taxpayers who could not enrol themselves as well as for those who enrolled but did not sign the enrolment form.

GST Rules

GST council at its 13th Meeting held on 31st March 2017 approved five amended rules for the Goods and Services Tax regime rules namely invoice, payment, refund registration, return and gave “tentative” nod to the remaining four rules viz. Composition, Valuation, Transition, ITC for comments and suggestion by various stakeholders..

Check GST Rules as per GST Bill 2017 from below….

Click Here to Download all GST Rules 2017

FAQ’s on GST Migration

CBEC has released 19 FAQ’s on GST Migration. Answers in the FAQ’s have been explained with the help of examples in a very simplified manner. The same are available on website of CBEC i.e. www.cbec.gov.in. CBEC helpdesk may also be contacted at helpdesk@gst.gov.in or call at 0124- 4688999 for queries in relation to migration.

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