GST Update

Weekly Update
14.10.2017

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National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
 Background

• This Presentation covers the GST changes /

observations/ press releases/ Tweet FAQs/ Sectoral
FAQs released by CBEC since the last update on
07.10.2017. 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

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N2a r c o t i c s ( N A C I N )
 GST Council Decisions

• GST Council Decisions in its 22nd Meeting on 6th

October, 2017
• Foreign Trade Policy Amended on 13th October,
2017
• 39 Notifications, one order and two circulars issued
on Central Tax and Integrated tax ; Similar
notifications issued by States as well

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N3a r c o t i c s ( N A C I N )
 No Reverse charge on purchases from
URD under Section 9(4) till 31.03.2018
• Notification No. 38/2017-Central Tax (Rate) dated 13th October,
2017
• Amends notification No. 8/2017-Central Tax (Rate) dated
28.06.2017.
• Notification 8/2017 gave a general exemption from GST for all
intra state purchases from unregistered persons by a registered
person.
• However proviso to para 1 of the said notification also provided
that exemption will not be available if the aggregate purchases
in a day from unregistered persons exceeded Rs.5000/-
• The proviso has now been omitted. Now the exemption
contained in notification 8/2017 shall apply to all registered
persons till 31.03.2018

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N4a r c o t i c s ( N A C I N )
 No Reverse charge on purchases from
URD under Section 9(4) till 31.03.2018

• For Inter-State Supplies, Notification No. 32/2017-Integrated

Tax (Rate) dated 13th October, 2017 has been issued
• It exempts all 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 under section
5(4) of the IGST Act, 2017
• The exemption is available till 31.03.2018.
• Thus, all supplies received from unregistered persons shall be
exempted.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N5a r c o t i c s ( N A C I N )
 Exemption to Casual Taxable Persons
supplying handicraft goods from obtaining
registration

• Casual taxable persons supplying handicraft goods –

exemption from registration; Notification No.38/2017 dated
13.10.2017 – amends notification No.32/2017 dated
15.09.2017.
• Scope enhanced; following new categories of goods added in
the earlier list;
• Textile (handloom products), Handmade shawls, stoles and
scarves ; Chain Switch; Crewel, wicker willow products, Articles
made of shola; Toran.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N6a r c o t i c s ( N A C I N )
 Time of Supply for small suppliers
having turnover up to Rs. 1.5 crore
• Special procedure for taxpayers with an aggregate turnover of
less than 1.5 Cr in the preceding financial year or current
financial year ( if likely to be less than Rs.1.5 crores)
• Notification No. 40/2017 dated 13.10.2017
• GST to be paid at the time of supply specified in Section
12(2)(1)(a) i.e. at the time of issue of invoice or the last date by
which invoice has to be issued in terms of Section 31.
• Thus, no GST on advances received by above taxpayers
• However, it is applicable ONLY for suppliers of goods. In case of
any advances received in respect of supply of services, GST will
have to be paid.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N7a r c o t i c s ( N A C I N )
 Furnishing of Returns by composition
dealer – extension of time

• Notification 41/2017- Central Tax dated 13.10.2017

• Time limit for furnishing the return by a composition supplier,
in FORM GSTR-4, under section 39(2) of the CGST Act, 2017
read with rule 62 of the CGST Rules, 2017 for the quarter July
to September, 2017 extended till the 15th November, 2017.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N8a r c o t i c s ( N A C I N )
 Furnishing of Returns – OIDAR
suppliers

• Notification 42/2017-Central Tax dated 13.10.2017

• The time limit for furnishing the return in FORM GSTR-5A for
the month of July, 2017, August, 2017 and September, 2017 by
a person supplying OIDAR services from a place outside India
to a non-taxable online recipient referred to in Section 14 of
the IGST Act, 2017 and Rule 64 of the CGST Rules, 2017,
• Extended till the 20th day of November, 2017. Earlier the last
date for July return was up to 15th September, 2017 ( Notn No.
25/2017-Central Tax)
• Therefore, this notification comes into effect, retrospectively,
on 15th September, 2017

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N9a r c o t i c s ( N A C I N )
 Furnishing of Returns by ISD

• Notification 43/2017 – Central Tax dated 13.10.2017.

• Extension of time limit for furnishing returns for July/Aug/Sep
by Input Service Distributors (ISD)
• the time limit for furnishing the return by an Input Service
Distributor in FORM GSTR-6 under sub-section (4) of Section
39 of the said Act read with Rule 65 of the Central Goods and
Services Tax Rules, 2017 for the months of July, 2017, August,
2017 and September, 2017 extended till the 15th day of
November, 2017

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 Manner of claiming credit in special
circumstances

• Notification 44/2017-Central Tax dated 13.10.2017

• Due date for filing GST ITC-01 (Section 18(1) of CGST Act, 2017
read with Rule 40(1)(b) of CGST Rules) for declaring the details
of stock held immediately preceding the date of registration
• The time limit for making a declaration, in FORM GST ITC-01,
by the registered persons, who have become eligible during
the months of July, 2017, August, 2017 and September, 2017,
to the effect that they are eligible to avail the ITC extended till
31st day of October, 2017.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N11
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 Amendment of CGST Rules, 2017

• Notification No. 45/2017-Central Tax dated 13.10.2017

• Time period for GST ITC-03 extended
• GST ITC -03, the form to be filed with in 90 days form the day
on which a person commences to pay tax under section 10
(Composition Scheme)

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 Amendment of CGST Rules (Contd.)

• Invoice cum Bill of Supply may be issued for supplies to

unregistered persons, if both taxable as well as exempted
supply done
• New Rule 46A : Invoice-cum-bill of supply inserted in the CGST
Rules
• Notwithstanding anything contained in rule 46 or rule 49 or
rule 54, where a registered person is supplying taxable as well
as exempted goods or services or both to an unregistered
person, a single “invoice-cum-bill of supply may be issued for
all such supplies.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N13
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 Amendment of CGST Rules ( Contd)

• Rule 54(2)- Tax Invoice by insurer or a banking company or a

financial institution, including a non-banking financial
company
• Consolidated tax invoice at the end of month may be
issued
• In Rule 54 (2), for the words “tax invoice” the words
“consolidated tax invoice” substituted; and after the words
“by whatever name called”, the words “for the supply of
services made during a month at the end of the month” shall
be inserted;

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 Amendment in CGST Rules (Contd.)

• Notification No. 45/2017-Central Tax dated 13.10.2017

• Composition Scheme applying in between a Quarter
• In Rule 62(1), the following proviso has been inserted, namely:-
 Provided that the registered person who opts to pay tax under
section 10 with effect from the first day of a month which is not
the first month of a quarter shall
o furnish the return in FORM GSTR-4 for that period of the quarter
for which he has paid tax under section 10 and
o shall furnish the returns as applicable to him for the period of the
quarter prior to opting to pay tax under section 10.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N15
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 Amendment in CGST Rules (Contd.)
• Amendment in GSTR-1
• In GSTR-1, Table 6, one new column for CESS added
(earlier it was missing)

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N16
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 Amendment in CGST Rules

Column for Cess added in GSTR-1A

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 Amendment in CGST Rules ( Contd.)

• Amendment in GSTR-4 ( Composition Scheme)

• In FORM GSTR-4, after instruction no.9, the following instruction
10 shall be inserted, namely:-
 For the tax periods July, 2017 to September, 2017 and October,
2017 to December, 2017, serial 4A of Table 4 shall not be
furnished.
• GSTR-4A is the Auto-drafted details for registered person opting
for composition levy ; Since timelines for GSTR-1/2/3 have been
postponed, GSTR-4A is not possible for these months and
therefore the instruction has been inserted

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N18
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 Cross Empowerment of State
Government / UT officers for refund
under Section 54 of CGST Act, 2017
• Notification 39/2017-Central Tax dated 13.10.2017
• Officers appointed under the respective SGST, 2017 or the UTGST,
2017, authorized to be the proper officers for the purposes of
section 54/ 55 of the said Acts by the Commissioner of the said
Acts, shall act as proper officers for the purpose of sanction of
refund under section 54/ 55 of the CGST Act read with the rules
made thereunder except Rule 96 of the CGST Rules, 2017, in
respect of a registered person located in the territorial jurisdiction
of the said officers who applies for the sanction of refund to the
said officers
• Similar provisions in Notification No. 11/2017 –Integrated Tax
dated 13th October, 2017
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 Composition Scheme

• Order No. 01/2017-Central Tax dated 13th October, 2017

• A person suppling any exempt services including services by
way of extending deposits, loans or advances in so far as the
consideration is represented by way of interest or discount,
not be ineligible for the composition scheme
• In computing his aggregate turnover in order to determine his
eligibility for composition scheme, value of supply the exempt
services including services by way of extending deposits, loans
or advances shall not be taken into account

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N20
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 Composition Scheme

• Notification No. 46/2017- Central Tax dated 13th October, 2017

• Turnover threshold limit enhanced from Rs.75 lacs to Rs.one

crore ( to Rs. 75 lacs from Rs.50 lacs for spl. category states)

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N21
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 Exemption from Integrated Tax on
import of goods

• Notification No. 77/2017-Customs: Exemption extended to

following imports
 Medicines/drugs/vaccines supplied free by United Nations
International Children's Emergency Fund (UNICEF), Red Cross or
an International Organisation subject to specified conditions.
 Import of gold by specified banks and specified Public Sector
Units
 Bonafide gifts imported by post or air up to CIF value limit
of 5000 rupees and exempted from any prohibition in
respect of the imports thereof under the FTDR (D & R) Act,
1992

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 Exemption from Integrated Tax on
import of goods

• Notification No. 77/2017-Customs: Exemption to import of

Rigs
 Rigs and ancillary items imported for oil or gas exploration and
production taken on lease by the importer for use after import
o Wherever the importer pays the Integrated tax on service of
lease under reverse charge
o And executes Bond as per the condition No. 102 in Notn No.
50/2017-Customs

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N23
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 Exemption to Imports by EOUs from
Integrated tax and Compensation Cess

• Notification No. 78 /2017-Customs amends the Notification

No. 52/2003-Customs, dated the 31st March, 2003
• Exemption from Integrated Tax and Compensation Cess
extended to imports of goods by EOUs
• However the exemption is temporary; up to 31st March, 2018.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N24
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 Exemption to imports under AA/EPCG
etc from Integrated Tax and
Compensation Cess
• Notification No. 79/2017 – Customs amends various
Notifications making following changes
 Holders of Advance Authorisation (AA) / EPCG/ Special AA/ AA
for deemed exports/ AA for annual requirements
 would not have to pay IGST and compensation Cess etc. on
imports.
• However the exemption is temporary; up to 31st March, 2018.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N25
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 Exemption on supply of goods

• Notification No. 35/2017-Central Tax (Rate) dated 13th

October, 2017 amends Notn No. 2/2017-Central Tax (Rate)
dated 28th June, 2017

• Duty Free Scrips( HSN- 4907)

 GST reduced from 5% to Nil (Exempted)
• Supply of goods by Govt Entity to CG, SG, UT, LA against
consideration in the form of grants.

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 Exemption to supply of services

• Notification 32-Central Tax(Rate) dated 13th October, 2017

amends Notn No. 12/2017-Central tax (Rate) on exemption of
services; Following Services exempted

 Supply of services by Govt Entity to CG, SG, UT, LA against

consideration in the form of grants
 Services provided by a GTA to an unregistered person,
including an unregistered casual person
 Service by way of access to a road or a bridge on payment
of annuity.

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 Rate revision on supply of goods

• Notification No. 34/2017-Central Tax (Rate) amends the Notn

No.1/2017-Central Tax (Rate), dated 28th June, 2017;
Important rate changes are:
• Waste, parings or scrap of plastic, rubber, paper, glass, E-waste
 18%/28% to 5%
• Sewing thread of manmade filaments; Sewing thread of
manmade staple fibres; Synthetic or artificial filament yarns
Yarn of manmade staple fibres
 18% to 12%

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 Leasing of Old Motor Vehicles
purchased prior to 1st July, 2017

• Notification No. 6/2017- Compensation Cess (Rate) amends

the Notification No. 2/2017-Compensation Cess (Rate);
Similarly Notn No. 31/2017-Central Rate
• Leasing of motor vehicles purchased and leased prior to 1st
July 2017 ; Rate of GST shall be
 65% of the rate of rate of Central tax, State tax and Cess as
applicable on supply of similar goods involving transfer of
title in goods.
• This is applicable only for three years i.e. up to 1st July, 2020.

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 Supply of Old Motor Vehicles
purchased prior to 1st July, 2017
• Notification No. 37/2017-Central Tax (Rate) and parallel notn
for Cess and Integrated tax
• Sale of motor vehicles purchased prior to 1st July 2017 and on
which no ITC taken; Rate of GST shall be
 65% of the total rate of Central tax, State tax and Cess as
applicable on supply of similar goods involving transfer of
title in goods.
• The entry applicable only for three years i.e. up to 1st July,
2020
• Conditions: Such supplier is registered person and 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
N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N30
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 Services under reverse charge
mechanism

• Notification No. 33/2017- Central Tax (Rate) amends the Notn

No. 13/2017- Central Tax (Rate), dated the 28th June, 2017 on
services under reverse charge mechanism; Following services
also brought under RCM
 Supply of services by the members of Overseeing
Committee to Reserve Bank of India
 GST to be paid on reverse charge by the recipient viz. RBI

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N31
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 Goods under reverse charge
mechanism

• Notification No. 36 /2017-Central Tax (Rate) amends the Notn

No.4/2017- Central Tax (Rate) dated 28th June, 2017 on goods
under RCM; Following goods brought under RCM
 Used vehicles, seized and confiscated goods, old and used
goods, waste and scrap
o When sold by Central Government, State Government, Union
territory or a local authority
o GST to be paid by the recipient.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N32
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 Any ISSUES/ queries?

• 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?

• Twitter Handles
• For General Questions
• https://twitter.com/askGST_GoI
• For technology related issues
• https://twitter.com/askGSTech
• NACIN twitter
• https://twitter.com/GSTNACIN

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N34
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 THANK YOU

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National Academy of Customs, Indirect Taxes and Narcotics (NACIN)