Na t i o n a l Ac a d e m y o f C u s t o m s , I n d i r e c t T a xe s a n d Na r c o t i c s ( NAC IN)

GST Update

Weekly Update

11.11.2017

1

Background

• This Presentation covers the GST changes / observations/ press releases/ Tweet FAQs/ Sectoral FAQs released by CBEC since the last update on 04.11.2017. It supplements the earlier GST Updates.

• This presentation is based on CGST Act/Rules/ Notifications. Similar parallel provisions in State Laws may be referred to as required

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN) 2

• Two Circulars No. 14 and 15 dated 6th November, 2017 by CBEC

• Similar notifications issued by States as well;

• Circular No. 42/2017-Customs dated 7th November, 2017 on Refund of Integrated tax by exporters

• GST Council Meeting on 10th November, 2017; Various Decisions taken in the meeting

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Notifications and Circulars

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

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• http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-14-gst.pdf

• Circular No. 14/14 /2017 – GST dated 06.11.2017

• Supplies of goods by a registered person to EOUs etc. would be treated as deemed exports under Section 147 of the CGST Act, 2017

• Notification No. 48/2017-Central Tax dated 18.10.2017 has been issued to treat such supplies to EOU / EHTP / STP / BTP units as deemed exports.

• Rule 89 of the CGST Rules, 2017 has been amended vide Notification No. 47/2017- Central Tax dated 18.10.2017 to allow either the recipient or supplier of such supplies to claim refund of tax paid thereon

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Procedure for Deemed Exports

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Prior intimation in prescribed proforma ( Form-A –format prescribed in the circular) by recipient EOU / EHTP / STP / BTP unit to -

(a) the registered supplier;

(b) the jurisdictional GST officer in charge of such registered supplier; and

(c) its jurisdictional GST officer.

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Procedure for Deemed Exports (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• On receipt of such supplies, the EOU / EHTP / STP / BTP unit shall endorse the tax invoice and send a copy of the endorsed tax invoice to –

(a) the registered supplier;

(b) the jurisdictional GST officer in charge of such registered supplier; and

(c) its jurisdictional GST officer.

• The endorsed tax invoice will be considered as proof of deemed export supplies by the registered person to EOU / EHTP / STP / BTP unit

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Procedure for Deemed Exports (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• The recipient EOU / EHTP / STP / BTP unit shall maintain records of such deemed export supplies in digital form, based upon data elements contained in "Form-B“

• A digital copy of Form – B containing transactions for the month, shall be provided to the jurisdictional GST officer, each month (by the 10th of month) in a CD or Pen drive, as convenient to the said unit.

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Procedure for Deemed Exports (Contd)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• http://www.cbec.gov.in/resources//htdocs-cbec/gst/circularno-15-gst.pdf

• Extension of time for filing GSTR 1A & 2A

• GSTR 2A only a read only document which is available in GSTR 2 of the recipient. After modifications if any GSTR-2 to be submitted on or before 30.11.2017.

• details in FORM GSTR-1A shall be made available to the supplier from the 1st of December to the 6th of December, 2017 for the month of July 2017.

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Timelines for GSTR-1A & 2A

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-2017/circ42-2017cs.pdf

• Instructions on cases of mismatch of GSTR-3B and GSTR-1 with the Shipping Bills filed in Customs; Common errors identified

• Incorrect Shipping Number in GSTR-1

• Amendment possible in Table 9 of the GSTR-1 of August month

• GSTN asked to provide functionality for this table

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Refund of IGST paid on Export Goods under Rule 96 of CGST Rules, 2017

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Invoice number and IGST paid amount mismatch

• EGM Errors

Shipping Lines being asked to file online EGM

• Wrong Bank Account given to Customs

Exporter should give the details wherever the details are not validated in the PFMS

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Refund of IGST paid on Export Goods- Common Errors ( Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Threshold Limits for registration extended to all service providers - whether supplying intra-State, inter-State or through ecommerce operator

• List of 28% GST rated goods pruned substantially, from 224 tariff headings to only 50 tariff headings

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GST Council Meeting on 10.11.17 Decisions

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Wet grinders consisting of stone as grinder

Tanks and other armoured fighting vehicles

Condensed milk

Refined sugar and sugar cubes

Pasta

Curry paste, mayonnaise and salad dressings, mixed condiments and mixed seasoning

Diabetic food

• Medicinal grade oxygen

Printing ink

Hand bags and shopping bags of jute and cotton

Hats (knitted or crocheted)

Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery

Specified parts of sewing machine

Spectacles frames

Furniture wholly made of bamboo or cane

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GST Council Meeting on 10.11.17 Decisions Reduction in GST rate from 28% to 12%

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets, gatta, kuliya

Flour of potatoes put up in unit container bearing a brand name

Chutney powder

Fly ash

Sulphur recovered in refining of crude

Fly ash aggregate with 90% or more fly ash content

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GST Council Meeting on 10.11.17 Decisions Reduction in GST rate from 18% to 5%

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Desiccated coconut

Narrow woven fabric including cotton wear [with no refund of unutilised input tax credit]

Idli/dosa batter

Finished leather, chamois and composition leather

Coir cordage and ropes, jute twine, coir products

Fishing net and fishing hooks

Worn clothing

Fly ash brick

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GST Council Meeting on 10.11.17 Decisions Reduction in GST rate from 12% to 5%

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Guar meal

Hop cone (other than grounded, powdered or in pellet form)

Certain dried vegetables such as sweet potatoes, maniac

Unworked coconut shell

Fish frozen or dried (not put up in unit container bearing a brand name)

Khandsari sugar

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GST Council Meeting on 10.11.17 Decisions Reduction in GST rate from 5% to Nil

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Miscellaneous

Aircraft engines from 28%/18% to 5%,

Aircraft tyres from 28% to 5%

Aircraft seats from 28% to 5%.

Bangles of lac/shellac from 3% GST rate to Nil

• Restaurant related Changes in GST Rates / ITC Eligibility Criteria

All stand-alone restaurants irrespective of air conditioned or otherwise, will attract 5% without ITC.

Food parcels (or takeaways) will also attract 5% GST without ITC. Restaurants in hotel premises having room tariff of less than Rs 7500 per unit per day will attract GST of 5% without ITC.

Restaurants in hotel premises having room tariff of Rs 7500 and above per unit per day (even for a single room) will attract GST of 18% with full ITC.

Outdoor catering will continue to be at 18% with full ITC.

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GST Council Meeting on 10.11.17 Decisions Other Rate Changes

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• GST on services by way of admission to "protected monuments" to be exempted.

• GST rate on job work services in relation to manufacture of those handicraft goods in respect of which the casual taxable person has been exempted from obtaining registration, to be reduced to 5% with full input tax credit.

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GST Council Meeting on 10.11.17 Decisions Other Rate Changes

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Rationalization of certain exemption entries

• Irrespective of whether permanent transfer of Intellectual Property is a supply of goods or service.-

permanent transfer of Intellectual Property other than Information Technology software attracts GST at the rate of 12%; and

permanent transfer of Intellectual Property in respect of Information

• Technology software attracts GST at the rate of 18%.

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GST Council Meeting on 10.11.17 Decisions

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Other changes for simplification and harmonisation or clarification of issues

• Clarification: 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. Service provided using such goods would in any case attract applicable tax.

• RCM: GST on supply of raw cotton by agriculturist will be liable to be paid by the recipient of such supply under reverse charge.

• Supply of e-waste attracts 5% GST rate. This rate applies only to e-waste discarded as waste by the consumer or bulk consumer. Concerned notification to be amended

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GST Council Meeting on 10.11.17 Decisions

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Clarifications

• It is being clarified that credit of GST paid on aircraft engines, parts & accessories will be available for discharging GST on inter–state supply of such aircraft engines, parts & accessories by way of inter-state stock transfers between distinct persons as specified in section 25 of the CGST Act.

• Processed products such as tea (i.e. black tea, white tea etc.), processed coffee beans or powder, pulses (de-husked or split), jaggery, processed spices, processed dry fruits & cashew nuts etc. fall outside the definition of agricultural produce given in notification No. 11/2017-CT(R) and 12/2017-CT(R) and therefore the exemption from GST is not available to their loading, packing, warehousing etc.

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GST Council Meeting on 10.11.17 Decisions

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Clarifications

• A suitable clarification will be issued that

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);

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.

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GST Council Meeting on 10.11.17 Decisions

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Form GSTR-3B shall continue to be filed till March, 2018

• Form GSTR-1 to be filed on

Monthly basis (annual aggregate turnover more than Rs. 1.5 crore)

Quarterly Basis (annual aggregate turnover up to Rs. 1.5 crore)

• Late fee for filing GSTR 3B for July, Aug., Sept. waived. Those who have already paid late fees, will be refunded by way of credit in the Electronic Credit Ledger.

• Late fee reduced from Rs.100/- per day to Rs.10/- per day ( For October, 2017 onwards)

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GST Council Meeting on 10.11.17 Decisions RETURNS

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Uniform rate of tax @ 1% under composition scheme for manufacturers and traders

• For traders, turnover will be counted only for supply of taxable goods; Thus no 1% tax on exempted goods

• Supply of services by Composition taxpayer up to Rs. 5 lakh per annum will be allowed by exempting the same

• Eligibility for composition will be increased to Rs. 1.5 Crore per annum (CGST and SGST Acts to be amended)

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GST Council Meeting on 10.11.17 Decisions Composition Scheme

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

GST Portal Updates

24 Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Form GST ITC-04 – A functionality has been provided to Manufacturers to intimate details of Goods/capital goods sent to job worker and received back. This is a quarterly Statement to be furnished by them.

• Form GST PMT-07 - Application for intimating discrepancy relating to payment (PMT-07 Grievance for payment) is available on GST Portal. This functionality will help you to raise grievance when the amount is debited from your account, but your Electronic Credit Ledger is not updated.

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New Functionalities on GST Portal

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• Facility to revise TRAN-1 :

Facility to revise Form GST TRAN-1 has been enabled for Taxpayers, who had already filed it (prior to 9th November 2017).

If revision is resulting in downward credit, the Taxpayer should be able to revise and file, only if he has sufficient balance in his credit ledger.

Taxpayers who file TRAN -1 for the first time on or after 9th November 2017, will not be able to revise it immediately. The functionality for them to revise the TRAN-1 shall be enabled shortly.

It may be noted that TRAN -1 can be revised only once. Last date extended till 31.12.2017

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New Functionalities on GST Portal (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• For Migrated taxpayers :

Form GST REG-29 : A functionality has been provided to migrated taxpayers (who are not liable for registration under GST) to file an Application for cancellation of provisional registration.

Please Login with credentials, click on link “Cancellation of Provisional Registration” at the Dashboard (under view profile), mention reason, sign and submit.

The cancellation will be effective from appointed date.

However, if any returns are already filed by the taxpayer, he should apply for cancellation under normal scheme in GST REG-16

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New Functionalities on GST Portal (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• For Exporters :

Table 6A of Form GSTR 1 - Taxpayer has been provided with facility to file their export data, in Table 6A of Form GSTR 1, from the month of August, 2017 onwards, to enable validation and sanction of refund.

This data once filed, need not be filed by taxpayer again at the time of filing returns, of the relevant months.

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New Functionalities on GST Portal (Contd)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• For taxpayers who have opted for Composition Scheme:

Form GSTR 4 - An Excel based GSTR-4 Offline tool has been provided to taxpayers (opting for composition scheme) to prepare their GSTR-4 Return offline. This tool will help them for generation of JSON file, for upload of data on GST Portal and for correction of downloaded GSTR-4 error file & for regeneration of JSON file for upload. Form GSTR-4 online upload functionality is also available to them for uploading of their quarterly returns.

Pl note that taxpayers who have opted for composition from beginning will be able to file Form GSTR-4 on the portal. Those who have opted in for composition later and have to file GSTR-1, 2, 3 for part period may wait till we enable the facility on the portal soon.

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New Functionalities on GST Portal (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Form GST CMP-02 – As per Notification No. 45/2017 Central Tax dated 13/10/2017 issued by CBEC, a functionality has been made available to you for Intimation to pay tax under Section 10 (Composition Levy) under Rule 3(2) of CGST Rules. This intimation is given by the person opting to pay tax under Composition Levy from the first of next month.

Form GST CMP-03 – As per Order No. 5/2017-GST dated 28/10/2017 issued by CBEC, a functionality has been made available to you for Intimation of details of stock held on the date preceding the date from which the option for composition levy is exercised. You can fill this form and same can be filed electronically on GST portal by 30th November 2017, if you are opting for composition scheme.

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New Functionalities on GST Portal (Contd.)

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

• https://cbec-gst.gov.in/

• CBEC MITRA HELPDESK

• 1800 1200 232

• cbecmitra.helpdesk@icegate.gov.in

• GSTN Help Desk

• helpdesk@gst.gov.in

• Help Desk Number: 0120-4888999

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Any ISSUES/ queries?

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN)

Any ISSUES/ queries?

• Twitter Handles

• For General Questions

• https://twitter.com/askGST_GoI

• For technology related issues

• https://twitter.com/askGSTech

• NACIN twitter

• https://twitter.com/GSTNACIN

Na t i on a l Aca d emy o f C u s t oms , I n d i r ec t T a xes a n d Na r co t i c s ( NAC IN) 32

THANK YOU

Na t i o n a l Ac a d e m y o f C u s t o m s , I n d i r e c t T a xe s a n d Na r c o t i c s ( NAC IN) 33