Western India Regional Council of
The Institute of Chartered Accountants of India

Law Update Details

 
February 2019 CA. Rajiv Luthia
 

CBIC vide Notification No. 67/2018-CT dated 31st December, 2018 has extended due date for completing migration of taxpayer who have received provisional IDs but could not complete the migration process

CBIC vide Notification No. 68/2018-CT, 69/2018-CT & 70/2018-CT dated 31st December, 2018 has extended due date for furnishing the return in form GSTR 3B for the newly migrated taxpayers for the period from July, 2017 to February, 2019 till 31st March, 2019.

CBIC vide Notification No. 71/2018-CT & 72/2018-CT dated 31st December, 2018 has extended due date for furnishing the return in form GSTR 1 for the newly migrated taxpayers for the period from July, 2017 to February, 2019 till 31st March, 2019.

CBIC vide Notification No. 73/2018-CT dated 31st December, 2018 has exempted supplies made by Government Departments, local authority, governmental agencies, specified authority/board, society established by government or local authority and PSUs to other Government Departments, local authority, governmental agencies, specified authority/board, society established by government or local authority and PSUs from TDS provisions u/s. 50.

CBIC vide Notification No. 74/2018-CT dated 31st December, 2018 has amended CGST rule, 2017 w.e.f 31st December, 2018.

The gist of major amendments is as follows

Amended Rule 45(3) whereby the transaction related to dispatch of goods from one job worker to other job worker are no more required to be reported in GST ITC-04.

Proviso is inserted to Rule 46 (Tax Invoice), 49 (Bill of Supply), 54(2) (Consolidated Tax invoice by banking company etc.) & 54(4) (Ticket by passenger transportation service supplier) whereby stignature or digital signature of the supplier or his authorised representative shall not be required in the case such documents is issued electronically in accordance with the provisions of the Information Technology Act, 2000.

Rule 109B is inserted where by revisional authority is required to serve notice in FORM GST RVN-01 & give reasonable opportunity of being heard before revising the order under section 108.

Rule 138E is proposed to be inserted from date to be notified to provide that no e-way bill shall be allowed to be generated in cases of default in furnishing GST return for consecutive 2 tax periods.

The Commissioner is empowered to allow generation of E-way bill in respect of above on sufficient cause being shown & for reason recorded in writing.

Form GST RFD 01 (Application for refund) has been substituted with new form.

Form GSTR 9 & GSTR 9A (Annual Returns) has been substituted with new forms.

Form GSTR 9C (Reconciliation Statement/Audit Report) has been substituted with new form.

CBIC vide Notification No. 75/2018-CT, 76/2018-CT & 77/2018-CT dated 31st December, 2018 has waived the late fees on account of delay in filing/furnishing GSTR 3B, GSTR 1 & GSTR 4 for the period from July, 2017 to September, 2018 provided all such returns are filed between period from 22nd December, 2018 to 31st March, 2019.

CBIC vide Notification No. 78/2018-CT dated 31st December, 2018 has extended due date for furnishing the return in form GSTR ITC 04 (declaration in respect of goods dispatched to a job worker or received from a job worker) for the period July, 2017 to December, 2018 till 31st March, 2019.

CBIC vide Notification No. 24/2018-CT (Rate) dated 31st December, 2018 has reduced the rate of certain goods as per recommendation of GST council in its 31st Council meeting.

CBIC vide Notification No. 25/2018-CT (Rate) dated 31st December, 2018 has exempted certain goods as per recommendation of GST council in its 31st Council meeting.

CBIC vide Notification No. 27/2018-CT (Rate) dated 31st December, 2018 had made following amendments in Notification No.11/2017-CT (Rate) w.e.f 1st January, 2019.

Explanation 1 to Entry No. 7(i) provides that the said entry includes supply of food or any other article for human consumption at a canteen, mess, cafeteria or dining space of an intuition such as school, college, hospital, industrial unit, office, by such institution or by any other person. The said explanation is amended to omit the reference to “school” & “college” from such institutions.

Entry 8(iva) is inserted whereby Central tax rate of 2.5% is specified for services of transportation of passengers, with or without accompanied baggage, by air, by non-scheduled air transport service or charter operations, engaged by Kumaon Madal Vikas Nigam Ltd & Haj Committee in respect of religious pilgrimage facilitated by the Government of India, under bilateral arrangement subject to condition that Input tax credit in respect of goods used in supplying the service has not been taken.

Entry 15(vi) is inserted whereby central tax rate of 6% is specified for service of third party insurance of “goods carriage”.

Entry 17(viia) is inserted whereby rate for tax in respect of services of leasing or renting of goods is specified at tax as applicable on supply of like goods involving transfer of title in goods.

Entry 34(2) is amended whereby central tax in respect of services by way of admission to exhibition of cinematograph films where price of admission ticket is Rs. 100 or less from 9% to 6%.

Entry 34(iia) is inserted whereby central tax in respect of services by way of admission to exhibition of cinematograph films where price of admission ticket is more than Rs. 100 from 14% to 9%.

Entry 38 is inserted whereby by central tax of 9% is specified for services by way of construction or engineering or installation or other technical services, provided in relation of setting up of,

(a) Bio-gas plant
(b) Solar power based devices
(c) Solar power generating system
(d) Wind mills, Wind Operated Electricity Generator (WOEG)
(e) Waste to energy plants / devices
(f) Ocean waves/tidal waves energy devices/plants

CBIC vide Notification No. 28/2018-CT (Rate) dated 31st December, 2018 has made following amendments in notification 12/2017-CT (Rate) w.e.f 1st January, 2019.

Entry 21B is inserted whereby exemption is granted to services provided by a goods transport agency, by way of transport of goods in a goods carriage, to,-

(a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies,

which has taken registration under the CGST only for the purpose of deducting tax under Section 51 and not for making a taxable supply of goods or services

Consequently, vide Notification No. 29/2018-CT (Rate) dated 31st December, 2018, Entry 2(g) of notification 13/2017-CT (Rate) has been amended whereby such services are excluded from provision of Reverse charge mechanism (RCM).

Entry 27A is inserted whereby exemption is granted to service provided by a banking company to Basic Saving Bank Deposit (BSBD) account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY).

Entry 34A grants exemption to services supplied by CG, SG, UT to their undertaking or PSU by way of guaranteeing the loans taken by such undertaking or PSUs from financial institution. This entry is amended to extend the exemption for loans taken from banking company also.

Entry 67 granting exemption to service provided by IIMs is omitted since IIMs are now regarded as “educational institutions” as per IIM Act, 2018 which came into force from 31st January, 2018.

Entry 74A is inserted whereby exemption is granted to services provided by rehabilitation professionals recognised under the Rehabilitation Council of India Act, 1992 by way of rehabilitation, therapy or counselling and such other activity as covered by the said Act at medical establishments, educational institutions, rehabilitation centres established by CG, SG or UG or an entity registered under section 12AA of the IT act, 1961.

CBIC vide Notification No. 29/2018-CT (Rate) dated 31st December, 2018 has made following amendments in notification 13/2017-CT (Rate) w.e.f 1st January, 2019.

Entry 12 has been inserted whereby a banking company, located in taxable territory is required to pay tax under RCM for service provided by business facilitator (BF).

Entry 13 has been inserted whereby a business correspondent, located in the taxable territory is required to pay tax under RCM for service provided by an agent of such business correspondent.

Entry 14 has been inserted whereby a registered person, located in the taxable territory is required to pay tax under RCM for Security services provided by person other than a body corporate. The provisions of RCM are not be applicable if security services is provided to

i) a) a Department or Establishment of the Central Government or State Government or Union territory; or

(b) local authority; or

(c) Governmental agencies;

which has taken registration under the Central Goods and Services Tax Act, 2017 only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or

(ii) a registered person paying tax under section 10 (Composition dealer).

CBIC vide Notification No. 30/2018-CT (Rate) dated 31st December, 2018 has inserted explanation 2 to entry 9(vi) which provide that transaction of Multi modal transport of goods shall be taxable at specified rate of 6% only in case of transport of goods from a place in India to another place in India.

CBIC vide Circular No. 75/49/2018-GST dated 27th December, 2018 has issued guidelines for processing of applications for financial assistance under the Central Sector Scheme namely “Seva Bhoj Yojna” for reimbursement of CGST and the CG’s share of IGST on the purchase of certain raw food items used for distributing free food to general public/devotees by charitable/religious institutions like Gurudwaras, Temples, Dharmik Ashrams, Mosques, Dargahs, Churches, Math, Monastries etc.

CBIC vide Circular No.76/50/2018-GST dated 31st December, 2018 has clarified that:

Government departments are liable to get registered and pay GST on supply of used vehicles, seized and confiscated goods, old and used goods, waste and scrap made by them to unregistered person subject to provisions of Section 22 & 24 of the CGST Act. Such supplies made to registered persons are already covered under RCM vide Notification No. 36/2017- CT (Rate) & 37/2017-CT (Rate) both dated 13th October, 2017.

In case of revision of prices on or after 1st July,2017 in respect of goods or services supplied before 1st July,2017, the debit note / credit note / supplementary invoice shall be raised considering the tax rates as per the provisions of GST Acts.

In view of Section 15(2) of the CGST Act, the taxable value for the purpose 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 inclusive of the said TCS.

CBIC vide Circular No. 77/51/2018-GST dated 31st December, 2018 has clarified various issues related to withdrawal from composition and other related matters.

CBIC vide Circular No. 78/52/2018-GST dated 31st December, 2018 has issued following clarifications in case exporter of services outsources a portion of service contract to another person located outside India:

Export of services located in India would be liable to pay IGST under RCM on that portion of services which have been provided by the supplier located outside India. IGST so paid would be eligible as Input Tax Credit.

That portion of consideration paid directly by recipient located outside India to the service provider located outside India for the outsourced part of the services shall be treated as receipt of convertible foreign exchange in terms of Section 2(6)(iv) of the IGST Act provided that

i) The exporter of service located in India has paid IGST under RCM for outsourced services; and

ii) RBI has allowed, by general instruction or specific approval, that a part of consideration for such exports can be retained outside India

CBIC vide Circular No. 79/53/2018-GST dated 31st December, 2018 has clarified various issues related to refunds such as physical submission of documents, calculation of refund amount for claim of refund of ITC on account of inverted duty structure, disbursal of refund amounts after sanction, refund of accumulated ITC of Compensation Cess etc.

CBIC vide Circular No. 80/54/2018-GST dated 31st December, 2018 has issued various clarifications on GST rates and classification of various goods.

CBIC vide Circular No.81/55/2018-GST dated 31st December, 2018 has issued various clarifications on GST rate for Sprinkler & Drip Irrigation System including laterals.

 

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