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THE EDGE
TAX & LEGAL UPDATE
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Vol 1, Part 12
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Wednesday, Nov 15, 2017
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Weekly on GST, FSSAI, RERA & More...
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FROM EDITOR'S DESK
We witnessed major changes from the procedural aspect as well as the Rate of Tax in GST law in the 23rd Council Meeting held on 9th and 10th of November at Guwahati. Most of the changes have been notified already and are effective from 15th November, 2017. We are now looking at a different law as against what was introduced earlier. How these modifications would benefit the Taxpayers only time will tell. Lets wait and watch. We invite your comments and views on this attempt by the Government to revamp the GST law.
Please contact us at contact@ghiya.in
PANKAJ GHIYA, ADVOCATE
Mobile: +91 98290 13626
TIMELINES
Upcoming due dates under GST & Income Tax Laws:
| GSTR-4 (July-Sep, Composition Dealers) |
24th Dec (No need to file GSTR-4A) |
| GSTR-6 (July-Sep, Input Service Distributor) |
31st Dec |
| ESI & PF |
15th Nov |
| Q2 TDS certificate (Payments other than salary) |
15th Nov |
| GSTR-5 (July, August, September, October) |
11th Dec |
| GSTR-5A (OIDAR) (July, August, September, October) |
15th Dec |
| GSTR-3B (Oct) |
20th Nov |
| AOC 4 and MGT 7 with ROC |
28th Nov |
| GST ITC-01 |
30th Nov |
| GST ITC-04 |
31st Dec |
| GST CMP-03 |
30th Nov |
| IT Audit International TP and Domestic TP Cases & Returns |
30th Nov |
| GSTR-1 (Jul-Sep) Turnover upto 1.5 Cr. Quarterly Return |
31st Dec |
| GSTR-1 (Jul-Oct) Turnover above 1.5 Cr. Monthly Return |
31st Dec |
| GSTR REG-26 |
31st Dec |
| GST TRAN-1 (With Revision Facility) |
27th Dec |
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THE EDGE
Notifications
Circulars
Orders
Judgements
Articles
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FORTHCOMING EVENTS
10th Nov 2017
The Society of Construction Law - 7th International Conference
Know More
2nd-3rd Dec 2017
AIFTP National Tax Convention at Jabalpur - To be inaugrated by Hon'ble Chief Justice of India
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MISCELLANEOUS
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Suppliers directed to record UIN of diplomatic missions for refund
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The Government of India floats Series-III of Sovereign Gold Bonds 2017-18 for the period from October 09, 2017 to December 27, 2017 ; For the next subscription period i.e. November 7-9, 2017, the issue price shall be Rs. 2,934 per gram with Settlement on November 16, 2017.
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Govt Enables Option to Revise Form for Transition Credit
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QUERIES ANSWERED
We are an e-commerce exporter and registered under GST. Our tax liability is NIL as all exports are zero rated. Can we claim refund of GST paid on input services?
- Mr. Sudhanshu
Answer: In our opinion, A person exporting goods has 2 options under the GST Act. First, one can obtain LUT and export goods without payment of IGST. In that case, one can claim refund of the unutilized input tax credit when zero rated supplies are made without payment of IGST. [Refer Section 54(3)] Second, one can pay IGST after utilizing the Input Tax paid on the Inputs and then claim refund of the IGST so paid.
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Weekly Quiz
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RECENT PUBLICATIONS
GST Law & Practice, 4th Edition, Released at National Tax Conference, Kolkata by Hon'ble Mr. Justice A.K.Goel Judge, Supreme Court of India on 02.09.2017
Buy Now
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ITAT JUDGEMENTS
JAIPUR BENCH
Smt. Krishana Soni vs. Income-Tax Officer dt. 10.11.2017
The penalty cannot be levied simply because of the addition made by the AO as it was not allowable under the provisions of section 44AE. It is not the case of the AO that the depreciation claimed by the assessee is a bogus claim on non existing business asset or otherwise absolutely wrong.
Read More
Inder Kumar Gupta vs. Income-tax Officer dt. 25.07.2017
Counsel : Shri Manish Agarwal (CA)
Issue: Application of provisions of Section 145(3) – dismissed
Confirmation of disallowance u/s. 40(a)(ia) and application of Section 194C – Allowed
Disallowing expenses claimed under P&L Account – Allowed
Read More
NEW DELHI
Dehradun Public School vs. Additional Commissioner of Income-Tax, Range-I, Gaziabad
Mere charging of fees from college students, for providing additional facility of transport, being incidental to educational activity, does not amount to business.
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Maruti Suzuki India Ltd. vs. Additional Commissioner of Income-tax, Range-6, New Delhi
Where assessee a licensed manufacturer of cars in India entered into transaction of payment of royalty to its AE in consideration for right to manufacture and sell various models of motor cars, however, there was a payment of inseparable royalty for use of both licensed information and licensed trademarks, no addition could be made on account of transfer pricing adjustment of royalty for use of licensed trademark only.
Read More
THE 23rd GST COUNCIL MEETING - HIGHLIGHTS
There have been substantial changes in the return filing procedure and last dates for filing the same. Composition Scheme has also been modified. The Rate of Tax has also been reduced for a large number of Goods and Services.
Press Releases:
Rate Changes
Return Filing
Composition Scheme
RECENT AMENDMENTS
GST - CENTRAL TAX
Earlier GST Notifications
Notification No. 55/2017 – Central Tax dt. 15.11.2017
Twelfth amendment to CGST Rules, 2017
Read More
Notification No. 56/2017 – Central Tax dt. 15.11.2017
Seeks to mandate the furnishing of return in FORM GSTR-3B till March, 2018
Read More
Notification No. 57/2017 – Central Tax dt. 15.11.2017
Seeks to prescribe quarterly furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of upto Rs.1.5 crore
Read More
Notification No. 58/2017 – Central Tax dt. 15.11.2017
Seeks to extend the due dates for the furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than Rs.1.5 crores
Read More
Notification No. 59/2017 – Central Tax dt. 15.11.2017
Seeks to extend the time limit for filing of FORM GSTR-4
Read More
Notification No. 60/2017 – Central Tax dt. 15.11.2017
Seeks to extend the time limit for furnishing the return in FORM GSTR-5, for the months of July to October, 2017
Read More
Notification No. 61/2017 – Central Tax dt. 15.11.2017
Seeks to extend the time limit for furnishing the return in FORM GSTR-5A for the months of July to October, 2017
Read More
Notification No. 62/2017 – Central Tax dt. 15.11.2017
Seeks to extend the time limit for furnishing the return in FORM GSTR-6 for the month of July, 2017
Read More
Notification No. 63/2017 – Central Tax dt. 15.11.2017
Seeks to extend the due date for submission of details in FORM GST-ITC-04
Read More
Notification No. 64/2017 – Central Tax dt. 15.11.2017
Seeks to limit the maximum late fee payable for delayed filing of return in FORM GSTR-3B from October, 2017 onwards
Read More
Notification No. 65/2017 – Central Tax dt. 15.11.2017
Seeks to exempt suppliers of services through an e-commerce platform from obtaining compulsory registration
Read More
Notification No. 66/2017 – Central Tax dt. 15.11.2017
Seeks to exempt all taxpayers from payment of tax on advances received in case of supply of goods
Read More
GST - CENTRAL TAX RATE & INTEGRATED TAX RATE
Notification No. 41/2017 – Central Tax (Rate) & Notification No. 43/2017-Integrated Tax (Rate) dt. 14.11.2017
Seeks to amend notification no. 1/2017- Central tax (Rate) & notification no. 1/2017- Integrated tax(rate) dated 28.06.2017 respectively to give effect to gst council decisions regarding gst rates.
41/2017 CT
43/2017 IT
Notification No. 42/2017 – Central Tax (Rate) & Notification No. 44/2017-Integrated Tax (Rate) dt. 14.11.2017
Seeks to amend notification no. 2/2017- Central tax(rate) & notification no. 2/2017- Integrated tax (rate) dated 28.06.2017 respectively to give effect to gst council decisions regarding gst exemptions.
42/2017 CT
44/2017 IT
Notification No. 43/2017 – Central Tax (Rate) & Notification No. 45/2017-Integrated Tax (Rate) dt. 14.11.2017
Seeks to amend notification no. 4/2017- Central tax(rate) & notification no. 4/2017-Integrated Tax (Rate) dated 28.06.2017 respectively to give effect to gst council decision regarding reverse charge on raw cotton.
43/2017 CT
45/2017 IT
Notification No. 44/2017 – Central Tax (Rate) & Notification No. 46/2017-Integrated Tax (Rate) dt. 14.11.2017
Seeks to amend notification no. 5/2017- Central tax(rate) & notification no. 5/2017- Integrated tax(rate) dated 28.06.2017 respectively to give effect to gst council decisions regarding restriction of ITC on certain fabrics.
44/2017 CT
46/2017 IT
Notification No. 45/2017 – Central Tax (Rate) & Notification No. 47/2017-Integrated Tax (Rate)dt. 14.11.2017
Seeks to provide concessional GST rate of 2.5% & 5% respectively on scientific and technical equipments supplied to public funded research institutions.
45/2017 CT
47/2017 IT
Notification No. 46/2017 – Central Tax (Rate) & Notification No. 48/2017-Integrated Tax (rate) dt. 14.11.2017
Seeks to amend notification No. 11/2017-CT(R) & notification No. 8/2017-IT(R) so as to specify rate @ 2.5% & 5% for standalone restaurants and @9% & 18% for other restaurants, respectively reduce rate of job work on “handicraft goods” @ 2.5% & 5% respectively and to substitute “Services provided” in item (vi) against Sl No. 3 in table.
46/2017 CT
48/2017 IT
Notification No. 47/2017 – Central Tax (Rate) & Notification No. 49/2017 –Integrated Tax(Rate) dt. 14.11.2017
Seeks to amend notification No. 12/2017-CT(R) & notification No. 9/2017-IT(R) respectively so as to extend exemption to admission to “protected monument” and to consolidate entry at Sl. No. 11A & 11B and 12A & 12B respectively.
47/2017 CT
49/2017 IT
GST - INTEGRATED TAX (RATE)
Notification No. 50/2017 –Integrated Tax(Rate) dt. 14.11.2017
Seeks to amend notification No. 30/2017-Integrated Tax (Rate) dated 22.09.2017, so as to extend the benefit of IGST exemption, applicable in relation to supply of Skimmed milk powder, or concentrated milk for use in the production of milk distributed through dairy co-operatives to the companies that are registered under the Companies Act, 2013 also
Read More
GST - CIRCULARS / ORDERS
Order No. 9/2017-GST dt. 15.11.2017
Seeks to extend the due date for submitting FORM GST TRAN-1.
Read More
Order No. 10/2017-GST dt. 15.11.2017
Seeks to extend the due date for revision of FORM GST TRAN-1
Read More
Circular No. 16/16/2017-GST st 15.11.2017
Clarifications regarding applicability of GST and availability of ITC in respect of certain services.
Read More
FROM THE BENCH
GST
Coimbatore Corporation Contractors Welfare Association vs. State of Tamil Nadu dt. 05.10.2017
Payment of GST for the works contracts for which agreements were executed prior to 01.07.2017 and work is under process, and for tenders called and Agreements executed after 01.07.2017 without any GST provision in the estimates – Matter remanded – Commissioner directed to consider the representation given by the Petitioner and pass orders on merits within 4 weeks from the receipt of this order after giving the petitioner an opportunity of personal hearing.
Read More
INCOME TAX
Thiagarajan Kumararaja vs. Union Of India
Whether, for the purpose of linking PAN with Aadhaar, it is Parliament's prerogative to make a particular provision directory in one statute and mandatory in others - YES: HC
Whether if PAN of a taxpayer is withdrawn or cancelled, it amounts to putting restrictions on right to do business - YES: HC
Read More
CENTRAL EXCISE
M/S SRD Nutrients Pvt. Ltd. vs. Commissioner of Central Excise, Guwahati
Notfn 20/2007-CX - There cannot be any surcharge when basic duty itself is Nil – Edu Cess & SHE Cess also refundable.
Read More
SERVICE TAX
Union of India Vs. Bengal Shrachi Housing development Ltd.
Under a lease arrangement between the Government (lessee) and lessor it is the provider of service alone who is liable for paying service tax. The taxable event is provision of service of renting of immovable property, while taxable person is person liable to pay tax, i.e. the service provider, namely, the lessor. However, in light of the sanction letter issued by Government undertaking to bear the obligation of registration charges, stamp duty, service tax etc. (if applicable) towards hiring of lease premises the lessor despite its liability would not liable to pay any service tax
Read More
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Discrepancy in HSN Codes & Impact on Taxability - Ms. Priyamvada Joshi (Adv.)
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HSN Stands for Harmonized System of Nomenclature. It was developed by the World Customs Organisation in order to classify over 5000 Goods all over the world in a systematic manner. It is an 8 digit code which is a combination of the Section No., Chapter No., heading and then sub-headings. They are used worldwide in order to ascertain the goods exported out or imported in the country. It has helped in a large way in simplifying the complex procedures of International trade. It mainly helps one in identifying which tax Rate is applicable on which product.
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Before the GST regime, the relevance of HSN Codes was limited to manufacturers, importers and exporters only, and the Traders were not required to use HSN Codes. However, under the GST law HSN Codes hold a lot of significance as the rate of GST applicable on a particular product depends on its HSN Code. A Registered Person is also required to showcase the HSN Code of the product they are supplying on the invoice, subject to conditions. The Government issued Notification No. 12/2017-Central tax in this regard, specifying that a registered person having annual turnover of up to 1.5 Crore need not write HSN Codes on the invoices issued by them. A person having Annual Turnover of more than Rs. 1.5 Cr but less than 5 Crores has to show first two digits of HSN Code and only a person with Annual Turnover of more than 5 Crores is mandatorily required to show 4 digits of HSN Code of the product they are supplying. An exporter or importer of a product is required to show the entire 8 digit code on their Invoices. There is a lot of confusion in the minds of Taxpayers as to which HSN Code is applicable on the product they deal in, as the applicability of a particular Tax rate depends on it. For instance, problem is faced by the Hospitals as they are unable to find separate codes for each drug. They are unable to identify under which slab a particular drug falls. This is causing hindrance in smooth implementation of GST. The entries in the Tax Rate Schedules are not explanatory enough for the traders to make the product easily identifiable. Different registered persons are categorizing a same product under different HSN Codes and charging different GST. This will attract huge quantum of litigation at a later stage. Adequate measures should be taken by the Government to remove this ambiguity so that unnecessary litigation can be avoided. Mechanism of Advance Ruling introduced under the GST law can help to a certain extent by providing clarifications, but that would be a time consuming procedure and a statutory fee is also to be paid in order to obtain Advance Ruling. The Government must address this issue and take necessary steps in order to bring clarity on this issue.
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Editorial Team :
Meenal Ghiya, Priyamvada Joshi, Ankit Agrawal, Deepak Garg
Disclaimer: "The Edge" is meant for informational purpose only and does not claim to be advice or opinion, legal or otherwise, whatsoever. The information provided is not intended to create any advocate-client relationship and is not for advertising. The views expressed by the Author(s) are their personal views.
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