Goods and Services Tax

31st GST Council Meeting Update

Goods and Services Tax – GST – By: – Manav Garg – Dated:- 10-1-2019 – Hi Readers, This is to inform that the GST council in their 31st council meeting held at New Delhi on 22nd Dec 18 has recommended various changes and thereafter notified by issuance of notification under GST law and its compliance, which are summarized below: Central Tax Notifications [Notification No. 67/2018 Central Tax dated 31st December, 2018] Extension in time limit for availing the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process to 31st Jan 19 and to furnish other details to migration@gstn.org.in to 28th Feb 19. [Notification No. 68/2018, 69/2018 & 70/2018 Central Tax dated 31st December, 2018] Time limit for furnishing the return in FORM GSTR-3B for the newly migrated taxpayers as specified in Notification No 31/2018 Particular Period Due Date Prior to change Jul 17 to Nov 18 31st Dec 18 After Change Jul 17 to Feb 19 31st M

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be filed before filing of GSTR-9 It is mandatory for a registered person to file all GSTR-1 and GSTR-3B for the FY 2017-18 before filing of GSTR-9. GSTR-4 to be filed before filing of GSTR-9A It is mandatory for a registered person under composition scheme to file all GSTR-4 returns for the FY 2017-18 before filing of GSTR-9A Additional Liability to be paid through DRC-03 Any transaction resulting in additional liability which is declared in GSTR-9 to be discharged in Cash Only by way of DRC-03 form Input Tax Credit cannot be availed through Form 9 & 9C Registered person cannot claim any ITC unclaimed during FY-17-18 through Form 9 & 9C return. All unclaimed ITC has to be claimed through GSTR-3B only for which Government has extended the due date till the month of filing of Return for 31st March 2019. Change in Heading of Form GSTR-9 & GSTR-9A Amendment of headings in the forms to specify that the return in FORM GSTR-9 & FORM GSTR-9A would be in respect of supplies etc

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of Late fees for late filling of GSTR-3B for period of Jul 17 to Sept 18, if GSTR-3B filled between period from 22nd Dec 18 to 31st Mar 19 [Notification No. 77/2018 Central Tax dated 31st December, 2018] Complete waiver of late fees for late filling of GSTR-4 for the period of Jul 17 to Sept 18, if furnished between period from 22nd Dec 18 to 31st Mar 19 [Notification No. 78/2018 Central Tax dated 31st December, 2018] Extension of time limit for filling of Form GST ITC-04, in respect of goods dispatched to Job worker or received from Job worker to 31st Mar 19 for the period Jul 17 to Dec 18 [Notification No. 79/2018 Central Tax dated 31st December, 2018] Amendment in Notification No.-2/2018 for insertion of proviso which provides officers for exercising power under Section 73, 74, 75 & 76 through the jurisdictional senior authority. Central Tax (Rate) Notifications [Notification No. 24/2018 & 25/2018 – Central Tax (Rate) dated 31st December, 2018] Change in the rate of GST appl

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shall pay the amount of central tax payable on the quantity of gold not exported, along with interest from the date when the said tax on such supply was payable, but for the exemption. [Notification No. 27/2018 – Central Tax (Rate) dated 31st December, 2018] Change in Rate of tax on supply of Services Service by way of construction or engineering or installation or other technical services, provided in relation of setting up of Bio-gas plant, Solar power based devices, Solar power generating system, Wind mills, Wind Operated Electricity Generator (WOEG), Waste to energy plants/devices, Ocean waves/tidal waves energy devices/plants will be taxable at 18% Supply of Food & Beverage to School & College will be exempted. Transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by specified organizations in respect of religious pilgrimage facilitated by the Government of India, under bilateral ar

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s or undertakings from Banking Companies shall be exempt Services provided by IIM will be qualify as educational institution thus remain exempt [Circular -84/01/2019-GST] Services provided by rehabilitation professionals recognized under the Rehabilitation Council of India Act, 1992 (34 of 1992) by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centers established by Central Government, State Government or Union territory or an entity registered under section 12AA of the Income- tax Act, 1961 (43 of 1961). [Notification No. 29/2018 – Central Tax (Rate) dated 31st December, 2018] Services Notified under Reverse Charge Services provided by business facilitator (BF) to a banking company will be liable to RCM Services provided by an agent of business correspondent (BC) to business correspondent (BC) will be covered under RCM Security services (by way of supply of security p

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te and inter-State supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to an unregistered person It is clarified that in case of revision of prices, after the appointed date, of any goods or services supplied before the appointed day thereby requiring issuance of any supplementary invoice, debit note or credit note, the rate as per the provisions of the GST Acts (both CGST and SGST or IGST) would be applicable The provisions of section 51 of the CGST Act are applicable only to such authority or a board or any other body set up by an Act of parliament or a State legislature or established by any Government in which fifty-one per cent. or more participation by way of equity or control is with the Government It is clarified that as per the above provisions, taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is incl

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the CGST Act shall apply for claiming credit on inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the date immediately preceding the date of issue of the order Circular No. 78/50/2018-GST, dated 31 December 2018 Clarification on export of services under GST It is clarified that the supplier of services located in India would be liable to pay integrated tax on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. Furthermore, the said supplier of services located in India would be eligible for taking input tax credit of the integrated tax so paid Circular No. 79/50/2018-GST, dated 31 December 2018 Calculation of refund amount for claims of refund of accumulated ITC on account of inverted duty structure The amount of refund eligible in case of refund on account of inverted duty structure is de

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e As per proviso to sub-section (3) of section 54, refund of unutilized ITC shall be allowed: Where the credit has accumulated on account of rate of tax on inputs being higher than the rate of tax on output supplies (other than nil rated or fully exempt supplies) Inputs, as defined under clause (59) of section 2, means any goods other than capital goods… Thus, ITC on account of input services and capital goods shall not be included in the value of Net ITC for the purpose of Rule 89(5) and hence the same cannot be claimed as refund under section 54(3) Refund to be allowed on all inputs as the meaning and scope of term inputs is very wide Definition of inputs under clause (59) of section 2 reads as follows: Any goods other than capital goods used or intended to be used by a supplier in the course or furtherance of business For the purpose of calculating the amount of Net ITC in the inverted duty, department rejected ITC on account of following claiming the same not directly consum

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person, being eligible to claim refund of compensation cess paid during the period July 2017 – May 2018, shall calculate the refund amount for each month as per the formula specified in Rule 89(4), i.e. Refund amount = (Turnover of zero rated supply of goods + Turnover of zero-rated supply of services)*Net ITC/Adjusted Total Turnover The sum of the eligible amount calculated above for the period July 2017 – May 2018 should be less than or equal to the amount actually claimed as refund in the month of July 2018. Whether refund of compensation cess paid on purchase of coal used for captive generation of electricity which is in turn used for manufacture of goods exported under LUT allowed? Clarification: Yes, refund shall be allowed even if input is not directly used for making zero-rated supplies. Whether ITC reversed to be taken into consideration for calculating the amount of Net ITC under Rule 89? Clarification: The meaning of Net ITC given in Rule 89(4) reads as follows: Input tax c

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hus, it has been clarified that refund claim filed for the relevant period is for the amount of Net ITC availed and not restricted only to the purchases made during the period. Moreover, section 16(4) also allows the registered person to claim ITC on or before the due date of filing of return for the month of September following the financial year to which the invoice pertains or the date of filing of annual return, whichever is earlier. Hence, if the invoice pertaining to the month of September on which ITC has been availed in the GSTR-3B of the month of October, the ITC for refund computation purpose would be considered for the month of October irrespective of the date of invoice or appearance in GSTR-2A. Circular No. 80/50/2018-GST, dated 31 December 2018 Clarification regarding GST rates & classification (goods) It is being clarified that LPG supplied in bulk, whether by a refiner/fractionator to an OMC or by one OMC to another for bottling and further supply for domestic use w

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ication No. 11/2017-Central Tax (Rate) dated 28.06.2017, Sl. No. 7(i) prescribes GST rate of 5% on supply of food and beverages services. Explanation 1 to the said entry states that such supply can take place at canteen, mess, cafeteria of an institution such as school, college, hospitals etc. On the other hand, Notification No. 12/2017-Central Tax (Rate), Sl. No. 66 (a) exempts services provided by an educational institution to its students, faculty and staff. A supply which is specifically covered by any entry of Notification No. 12/2017-Central Tax (Rate) dated 28-06-2017 is exempt from GST notwithstanding the fact that GST rate has been prescribed for the same under Notification No. 11/2017-Central Tax (Rate) dated 28.06.2017 Accordingly, it is clarified that supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate) Howeve

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additional duty of customs under sub-section (1) of section 3 of the Customs Tariff Act, 1975, would be allowed in terms of Explanation 3 to section 140, which shall become effective from the date the same is notified giving it retrospective effect Order No 2/2018 – Central Tax dated 31 December 2018 The said order has extended the time period relating to availment of Input tax credit pertaining to FY 17-18 and amendments in the details furnished in form GSTR-1 for FY 17-18 which are briefed below: Extension of the due date for availing ITC on the invoices or debit notes relating FY 2017-18. Section 16(4) of the CGST Act specifies the time limit for availment of input tax credit in respect of FY 17-18 which was due date of filing of Annual return or due date of filing of return for the month of September,2018. The said order has inserted an proviso after Section 16(4) to extend the time period to avail ITC in respect of invoices relating to FY 17-18 till the due date of filing of Marc

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n (1) of said section for the month of March, 2019. Extending the time period to make amendments in details furnished in form GSTR-1 pertaining to FY 17-18 Section 37(3) of the CGST Act allows rectification of any error or omission, if any in respect of return already filed. Proviso of the said section specifies that the rectification can be made till the filing of Annual return or due date of filing of September return following the financial year, whichever is earlier. Second proviso has been inserted via this order to extend the time period to allow rectification of the due date of filing of March 19 return or for the quarter Jan 19 to Mar 19. The relevant extract of the said proviso has been reproduced below: Provided further that the rectification of error or omission in respect of the details furnished under sub-section (1) shall be allowed after furnishing of the return under section 39 for the month of September, 2018 till the due date for furnishing the details under subsectio

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