17 Feb GST Updates -July-2018

Notification No 13/2018-Integrated Tax (Rate) – 29/06/2018

The Central Government on being satisfied that it is necessary in public interest, exempts the inter-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the integrated tax leviable thereon under sub-section (4) of section 5 of the said Act. The exemption contained in this notification shall apply to all registered persons till 30^th day of September, 2018.

Notification No 12/2018-Central Tax (Rate)-29/06/2018

The Central Government on being satisfied that it is necessary in public interest, exempts the intra-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the central tax leviable thereon under sub-section (4) of section 9 of the said Act. Provided that the said exemption shall not be applicable where the aggregate value of such supplies of goods or service or both received by a registered person from any or all the suppliers, who is or are not registered, exceeds five thousand rupees in a day. The exemption contained in this notification shall apply to all registered persons till 30^th day of September, 2018.

Notification No 12/2018-Union Territory Tax (Rate)-29/06/2018

The Central Government on being satisfied that it is necessary in public interest, exempts the intra-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the Union territory tax leviable thereon under sub-section (4) of section 7 of the said Union Territory Goods and Services Tax Act. The exemption contained in this notification shall apply to all registered persons till 30^th day of September, 2018.

Notification No 21/2018-Central Tax -18/04/2018

In the Central Goods and Service Tax Rules, 2017-

• In rule 89,sub-rule (5), in case of refund on account of inverted duty structure, refund of ITC shall be granted as per the following formulae

Notification No 22/2018-Central Tax -14/05/2018

The Central Government waives the late fee payable u/s 47 of the CGST Act 2017 for failure to furnish the return in FORM GSTR-3B by the due date for each of the months from October-2017 to April-2018, for the class of registered persons whose declaration in FORM GST TRAN-1 was submitted but not filed on the portal on or before 27/12/2017.

Provided that they have filed the declaration in FORM GST TRAN-1 on or before 10/05/2018 and FORM GSTR-3B on or before 31/05/2018.

Notification No 25/2018-Central Tax -31/05/2018

The Commissioner hereby extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 for the months of July, 2017 to June, 2018 till the 31^st day of July, 2018.

Notification No 26/2018- Central  Tax -13/06/2018

RULE 133

Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on supply of goods or services or the benefit of ITC to the recipient by way of reduction of prices, Authority may order-

• Reduction in prices
• Return to recipient an amount equal to reduction in prices along with interest @ 18%
• The deposit of an amount equal to fifty percent in the consumer welfare fund
• Imposition of penalty
• Cancellation of registration

RULE 138

No E-way bill is required, where goods and empty cylinders for packing of liquefied petroleum gas (moved for reasons other than supply) are being transported upto a distance of 20 KM from the place of business of consignor to the weighbridge and back to the consignor accompanied by a delivery challan.

Notification No 28/2018-Central  Tax -13/06/2018

A transporter who is registered in more than one state or union territory having the same PAN, he may apply for a Unique Common Enrollment Number (UCEN) by submitting FORM GST  ENR-02 using any of his GSTIN, after validation of UCEN he shall not be eligible to use GSTIN.

Circular No 49/23/2018-GST-21/06/2018As per Rule 138C(2) of CGST Act, where the physical verification of goods being transported has been done within a State or Union Territory, no further verification shall be carried out again unless information related to evasion of tax is received subsequently.

If doubts have been raised and any action initiated by the State Tax Officer, hard copies of the orders shall be issued and only such goods should be detained and confiscated which are in violation of the act.

Circular No 48/22/2018-GST-14/06/2018

­­-Services of short- term accommodation, conferencing, banqueting etc. provided to SEZ developer or unit should be treated as inter-state supply.

-The supplies to the SEZ developer or unit shall be zero rated and the supplier shall be eligible for refund of unutilized ITC, provided supplies received by SEZ developer or a unit.

-The fabric processors on the job work services shall be eligible for refund of unutilized ITC on account of inverted duty structure.

Circular No 47/21/2018-GST-08/06/2018

­­-If the contract between Original Equipment Manufacturer (OEM) and component manufacturer for supply of components made by using the moulds/dies belonging to component manufacturer, but the same have been supplied by OEM on free of cost (FOC) basis, in such cases OEM will be required to reverse the credit availed on such mould/dies.

-Where servicing of cars involving both supply of goods and services, and the values are shown separately then they are liable to tax at the rates applicable to such goods and services respectively.

-The principal and auctioneer for the purpose of auction by the private treaty of tea, coffee, rubber etc. shall maintain their books of accounts relating to principal and additional place of business at the respective places, if they face any difficulty then after intimating their jurisdictional officer can keep their books at the principal place of business.

– The railways shall not deliver the goods unless the e-way bill is produced at the time of delivery.

-E-way bill generation is required even if the goods transit within the state.

-Where goods move from DTA to SEZ there is no requirement of E-way bill.

Circular No 46/20/2018-GST-06/06/2018

­­It has been clarified that Renewable Energy Certificate (RECs) and Priority Sector Lending Certificates (PSLCs) attract 12% GST and duty credit scrips, attracts NIL GST.

Circular No 45/19/2018-GST-30/05/2018

-Refund of electronic cash ledger can be claim for the tax period by the Input Service Distributor, Non Resident and composition taxpayer by furnishing the return in FORM GSTR-6, FORM GSTR-5 and FORM GSTR-4 respectively. Filing of details in FORM GSTR-1 and GSTR-3B is not mandatory.

­­-Refund of integrated tax paid on export of services and supplies made to SEZ developer or unit can be claim by filing FORM GST RFD-01A with the condition that amount of refund shall not be more than mentioned in Table under

column 3.1(a), 3.1(b), 3.1(c) of FORM GSTR-3B

-Refund of unutilized input credit of compensation cess can be availed if zero rated supply made under bond/LUT, whereas they cannot claim refund of such cess in case of zero rated supply on payment of integrated tax.

-Registered Person will be eligible for the refund of unutilized ITC on zero rated supply of exempted or non GST goods with or without LUT/Bond.

Circular No 44/18/2018-GST-02/05/2018

The activity of transfer of ‘tenancy rights’ is squarely covered under the scope of supply and taxable per-se. Transfer of tenancy rights to a new tenant against consideration in the form of tenancy premium is taxable. However, renting of residential dwelling for use as a residence is exempt. Hence, grant of tenancy rights in a residential dwelling for use as residence dwelling against tenancy premium or periodic rent or both is exempt. As regards services provided by outgoing tenant by way of surrendering the tenancy rights against consideration in the form of a portion of tenancy premium is liable to GST.

Circular No 42/16/2018-GST-13/04/2018

-The registered person may file Central Excise / Service Tax return for the period prior to 1st July, 2017 by logging onto www.aces.gov.in and make payment relating to the same through EASIEST portal (cbec-easiest.gov.in), as per the practice prevalent for the period prior to the introduction of GST. However, with effect from 1st of April, 2018, the return filing shall continue on www.aces.gov.in but the payment shall be made through the ICEGATE portal. As the registered person shall be automatically taken to the payment portal on filing of the return, the user interface remains the same for him.

The arrears of interest, penalty and late fee in relation to CENVAT credit wrongly carried forward, service tax and central excise duty shall be recovered as interest, penalty and late fee of central tax to be paid through the utilization of the amount available in electronic cash ledger and shall be recorded in Part II of the Electronic Liability Register FORM GST PMT-01

Circular No 40/14/2018-GST-06/04/2018

The registered person (exporters) shall fill and submit FORM GST RFD-11 on the portal. An LUT shall be deemed to be accepted as soon as an acknowledgement for the same, bearing the Application Reference Number (ARN), is generated online. No document needs to be physically submitted to the jurisdictional office for acceptance of LUT. If it is discovered that an exporter whose LUT has been so accepted, was ineligible to furnish an LUT in place of bond as per Notification No. 37/2017-Central Tax, then the exporter’s LUT will be liable for rejection.

Circular No 41/15/2018-GST-13/04/2018

Rule 138 to 138D

In case of transportation of goods by road, an e-way bill is required to be generated before the movement of the consignment. The person in-charge of the conveyance shall carry the invoice or bill of supply or delivery Challan along with the copy of e-way bill in physical form or e-way bill number in electronic form.