The GST authorities are burning their midnight oil since July 2017 GST roll out in India. Due to the lack of readiness and unacceptability in the masses, the rules and notifications are getting amended quite frequently. Last day i.e., 13 Oct 2017, 39 GST Notifications were released. Yes, this is quite heavy to digest for the taxpayers of the country who have to crack and understand the law every time a new notification or circular is released.
One would not deny that it is not an easy task for a taxpayer to keep himself updated on the subject when so much of additions and deletions are taking place with a high frequency. To ease this, we have brought these notifications at one place.
1. CENTRAL TAX NOTIFICATIONS
Through this notification, the government has amended its previously issued notification vide 32/2017 dater 15/09/2017 to add certain items in the handicrafts goods. This Notification exempts a casual taxable person making supplies of specified handicrafts goods from obtaining registration where the aggregate value of such supplies does not exceed twenty lakh rupees in a financial year (ten lakh for special category state other than J&K).
The specified additions made in the handicrafts goods are:-
- Handmade shawls, stoles and scarves; and
- Entry 29-33 for Chain Stitch; Rewl, Namda and Gabba; Wicker Willow products; Toran; and Articles made of shola respectively.
A similar notification has also been issued in the Integrated Tax vide Notification No. 9/2017 – ITT.
Through this notification the government has declared that the officers appointed under the respective State Goods and Service Tax Act 2017 or the Union Territory Goods and Service Tax Act 2017 who are authorized to be the proper officer(s) as authorized for the purpose of section 54 and section 55 of the CGST Act by the commissioner of the said Acts shall act as the proper officer(s) for the purpose of sanction of refund under section 54 and 55 of the CGST Act.
A similar notification has also been issued in the Integrated Tax vide Notification No. 11/2017 – ITT.
This notification is applied on taxable persons whose aggregate turnover in the preceding year did not exceed INR 1.5 Crore or registered persons whose aggregate turnover in the year of registration is not estimated to be exceeding INR 1.5 Crore. (Persons who did not opt for composition scheme)
The liability to pay taxes by such persons shall be on the invoice basis. This means GST liability on advance received is waived of through this notification for such taxpayers as mentioned above.
This notification seeks to extend and notify the time limit for filing of GSTR 4 for the composition taxable persons for the 2nd quarter of 2017 i.e., Jul-Sep’ 2017 to 15th November 2017.
Here the date has extended to file the GSTR 5A till 20th November 2017 for the period of Jul – Sep 2017 for a person supplying online information or database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of IGST Act 2017 and rule 64 of the CGST Rules 2017.
Extends the time limit for furnishing the return by Input Service Distributor in form GSTR 6 for Jul – Sep till 15th November 2017.
Extends the time limit for making a declaration in form GST ITC 01 by the registered persons, who have become eligible during the month of July 2017 to the effect that they are eligible to avail the input tax credit under sec 18(1) of the CGST Act till 31st October 2017.
This notification has amended the CGST Rules. The following rules have undergone some amendments:-
- Rule 3: Composition Levy and Form GST CMP 02.
- Form GSTR 1: Under Table 6 of Zero Rated Supplies and Deemed Exports, one additional column no. 10 has been added of ‘Cess’.
- Form GSTR 1A: Under Table 4 of Zero Rated Supplies made to SEZ and Deemed Exports, one additional column no. 8 has been added of ‘Cess’
- Insertion of new rule no. 46A: Now one person can issue a single document for taxable supplies made along with exempt supplies with the name of ‘Invoice cum Bill of Supply’
- In Rule 54 sub rule 2: The word ‘Invoice’ has been substituted with ‘Consolidated Tax Invoice’
Threshold limit for Composition Scheme has been increased,
- From INR 75 Lac to INR 1 Crore.
- From INR 50 Lac to INR 75 Lac.
2. INTEGRATED TAX RATE
- Exempts the inter-State supply of goods or services or both received by a registered person from unregistered supplier from the whole of the IGST leviable thereon under section 5(4) of the IGST Act.
- The exemption contained in this notification shall apply to all registered persons till the 31st day of March, 2018.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 38/2017 – CTR.
- Seeks to amend the Entry No. 5 of the exemption Notification No. 09/2017- Integrated Tax (Rate) dated 28.06.2017.
Accordingly, this notification extends the exemption from GST to Central Government, State Government, Union territory, local authority or Governmental Authority. Earlier, ethe xemption was available to Governmental Authority only.
Revised text should be read as follows:
“Services by a Central Government, State Government, Union territory, local authority or Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.”
- New exemptions have been introduced through following Entries, are as follows:
Entry No. 10C: “Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants.”
Entry No. 22A: “Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the specified recipients.”
Entry No. 24A: “Service by way of access to a road or a bridge on payment of annuity.”
- Widened the scope of exemption Entry No. 43 of the Notification No.09/2017- Integrated Tax dated 28.06.2017.
Revised text is as follows: “Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.”
- Revised meaning of the following terms are as follows:
“(zf) “Governmental Authority” means an authority or a board or any other body, –
(i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution.
(zfa) “Government Entity” means an authority or a board or any other body including a society, trust, corporation, (i) set up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.”
Similar notification has also been issued in the Central Tax Rate vide Notification No. 32/2017 – CTR.
This notification inserts a new entry for a reverse charge in Notification No. 10/2017- Integrated Tax, dated 28.06.2017, the new entry has been mentioned below:
- Entry No. 12- Category of Supply of Services: Supply of services by the members of Overseeing Committee to Reserve Bank of India
- Supplier of service: Members of Overseeing Committee constituted by the Reserve Bank of India
- Recipient of Service: Reserve Bank of India.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 33/2017 – CTR.
Various rates have been changed. The notification can be accessed from here.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 34/2017 – CTR.
Through this notification, the government has amended its previous notification vide no. 02/2017 Integrated Tax Rate dated 28/6/2017 and have exempted certain specified goods.
Mentioned below are the new entries for exempted supplies:-
- Entry No. 122A with heading 4907 – Duty Credits Scrips; and
- Entry No. 150 – Supply of goods by a Government entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority, against consideration received from Central Government, State Government, Union territory or local authority in the form of grants.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 35/2017 – CTR.
For Reverse charge for goods, a new entry has been inserted vide Entry No. 6 in Notification No. 04/2017- Integrated Tax (Rate) dated 28.06.2017. The new entry is as follows:-
- Description of Goods: Used vehicles, seized and confiscated goods, old and used goods, waste and scrap.
- Supplier of goods: Central Government, State Government, Union territory or a local authority.
- Recipient of supply: Any registered person.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 36/2017 – CTR.
Change in the rate of tax for Motor Vehicle.
Chapter 87: Motor vehicle – 65% of integrated tax applicable otherwise on such goods under Notification No. 1/2017- Integrated Tax (Rate) dated, 28th June, 2017.
This is subject to following conditions:
- The Motor Vehicles was purchased by the lesser prior to 1st July, 2017 and supplied on the lease before 1st July, 2017 or
- i. The supplier of Motor Vehicle is a registered person.
- ii. Such supplier had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles.
Similar notification has also been issued in the Central Tax Rate vide Notification No. 37/2017 – CTR.
The GST rates have been amended for the following services:
- Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act 2017 for Earth work related 5% ; and for Oil and gas exploration (E&P) – 12%.
- Transport of passenger by any motor vehicle – 5% or 12% (with or without credit)
- Transport of Natural Gas through a pipeline – 5% or 12% (with or without credit)
- Renting of any motor vehicle-5% or 12% (with or without credit)
- Leasing of motor vehicles purchased and leased prior to 1st July 2017- 65 % of the rate of integrated tax as applicable
on a supply of like goods involving a transfer of title in goods.
- Job work for an umbrella and printing of all goods- 12%
Similar notification has also been issued in the Central Tax Rate vide Notification No. 31/2017 – CTR.
3. INTEGRATED TAX
The persons making inter-State supplies of taxable services and having an aggregate turnover not exceeding an amount of INR twenty lac (INR ten lac for special category state except J&K) in a financial year is not required to take registration under GST. It may be noted that this exemption is not applicable in case of supply of taxable goods.
4. COMPENSATION CESS RATE
One new entry has been inserted for levying of cess on Motor Vehicle:-
- Entry No. 2A;
- Goods: Leasing of the motor vehicle purchased and leased before July 1st 2017 under Chapter 99
- 65% of the rate of cess applicable to the supply of similar goods involving a transfer of title in goods.
- Sunset Period: July 1st 2020 i.e., only valid upto this date.
5. UNION TERRITORY TAX & UNION TERRITORY TAX RATE
Similar notifications for notifying / amending the provisions of the Union Territories have also been issued on the same lines as of Central Tax and Central Tax Rates.
Hope the information will assist you in your Business & Professional endeavours. In case of any query/ information, please do not hesitate to write back to us.