GST Amendments Applicable for Nov 2018

Stop bouncing here and there. If you are searching for GST amendments applicable for Nov 2018 attempt in your CA Exams, you have landed on a correct page.

Amedments cover a major part in your exam paper either it is Direct Tax or Indirect Tax. Therefore, you should prepare them thoroughly. Also, check the Direct Tax Amendments applicable for Nov 2018.
You don’t have to cover all the amendments till the date of your examination. The circulars, notifications, amendments made upto 30th April 2018 will only be applicable in your Nov 2018 Examinations.

 

But everybody knows that there are too many amendments in GST as there are number of circulars and clarifications issued in past six months which will form part of your examination. Hence, we have prepared an article which will help you in covering all the amendments in a short time. Amendments under GST for Nov 2018 are as follows -

Supply Under GST

 

  1. Clarification on Taxability of Printing Contacts
    [Circular No. 11/11/2017 GST dated 20.10.2017]Issue - Whether supply of books, .pamphlets, brochures, envelops, annual reports, leaflets, cartons, boxes etc. printed with design, logo, name, address, or other content supplied by recipient would constitute supply of goods or supply of services?Clarification - In the above context, supply would be determined by taking principal supply as a base defined in sec 2(90) of the CGST Act which says that any supply forming part of the composite supply is ancillary and treated as supply of goods or services.
  2. Clarification on Inter-state movement of goods or passengers or for repairs and maintenance by various modes of conveyance between distinct persons.[Circular No. 1/1/2017 IGST dated 07.07.2017]

  1. Clarification on inter-state movement of rigs, tools and spares, and all goods on wheels (like cranes)[Circular No. 21/21/2017 GST dated 22.11.2017]

Clarification -  Here the council has decided such inter-state movement of goods shall not be treated as Supply of Goods or Supply of Services and consequently no IGST will be applicable on such movements.

However, CGST/SGST/IGST shall be leviable on repairs and maintenance for such goods.

 

  1. Clarification on supply of an artist in various states and supply of goods by artists from galleries -

[Circular No. 22/22/2017 GST dated 21.12.2017]

  1. Clarification in respect of fees and penalty paid by the litigants in the Consumer Disputes and Redressal Commissions -

[Circular No. 32/06/2018 GST dated 12.02.2018]

  1. Clarification on taxability of Cost Petroleum -

[Circular No. 32/06/2018 GST dated 12.02.2018]

Portion of the value of petroleum which the contractor is entitled to take in the year of recovery of these contract cost is called “Cost Petroleum”. The council has decided that such cost is not considered a consideration for service to GOI and thus not taxable.

 

  1. Clarification regarding GST on Certain Services -

[Circular No. 34/08/2018 GST dated 01.03.2018]

  1. Clarification on the services provided by members of JV to JV or vice versa and inter se between the members

[Circular No. 35/09/2018 GST dated 05.03.2018]

The issue can be understand with the following examples -

 

Illustration A - There are 4 members in the J.V. including the operating member and each member contributes Rs 100/- as part of their share. A total amount of Rs 400/- is collected. The operating member purchases machinery for Rs 400/- for the JV to be used in oil production.

 

Sol. In the above example, there is no matter of ST/GST for the reason that the operating member is not carrying out an activity for another for consideration. The money paid for purchase of machinery is merely in the nature of capital contribution and is therefore a transaction in money.

 

Illustration B - There are 4 members in the J.V. including the operating member and each one contributes Rs 100/- as part of their share. A total amount of Rs 400 is collected. The operating member thereafter uses its own machine and performs exploration and production activities on behalf of J.V.

 

Sol. Here the operating member is using his own machinery and therefore providing “service” within the scope of supply of CGST Act. This is because in this scenario, the operating member is recovering the cost appropriated towards machinery and services from the other JV members in their participating interest also.

 

Charge of GST

 

 

  1. Enhancement of Turnover Limit for Composition Levy -

 

[Circular No. 46/2017 CT dated 13.10.2017]

Note - Students shall note that in respect of the turnover limit of special category states Jammu and Kashmir and Uttarakhand, the turnover limit for composition levy will be Rs 1 crore and not Rs 75 Lakh.

Special Category States -

  1. Arunachal Pradesh
  2. Assam
  3. Manipur
  4. Meghalaya
  5. Mizoram
  6. Nagaland
  7. Sikkim
  8. Tripura
  9. Himachal Pradesh

 

  1. Reduction in the composition tax payable by Manufacturer under CGST Act reduced to 0.5% to 1% -

[Notification No. 1/2018 CT dated 01.01.2018]

 

Composition tax payable by Manufacturers has been reduced from 1% to 0.5%. Hence, w.e.f 01.01.2018, effective rate of tax under composition scheme for manufacturers has been reduced from 2% to 1% (CGST+SGST). And now a uniform rate of 1% is applicable to both manufacturers and traders under composition scheme.

 

Further, Notification No. 8/2017 CT dated 27.06.2017 has also been amended to provide that for other categories of composition suppliers (other than manufacturers and restaurant), composition tax would be leviable as a percentage of turnover of taxable supplies of goods. Rather than a percentage of turnover. Which means from now onwards, exempted supplies would not form part of composition levy.

 

Composition Levy in respect of the various category of registered persons are as follows -

S.No. Category of Registered PersonsRate of Tax
1.Manufacturers, other than manufacturers of such goods as may be notified by the Government0.5% of the turnover in the State or Union Territory
2.Suppliers making supplies referred to in Clause (b) of Paragraph 6 of Schedule II2.5% of the turnover in the State or Union Territory
3.Any other supplies eligible for composition levy under section 10 and the provisions of this chapter0.5% of the turnover of taxable supplies of goods in the state or Union Territory

 

  1. Clarification on Eligibility of Restaurant Services for Composition Scheme -

[Order No. 01/2017 CT dated 13.10.2017]

Note - Students shall note that while computing the GST payable under composition scheme, the value of exempt services including the above services shall not be taken into account.

 

  1. GST to be payable under Reverse Charge on services provided by overseeing Committee members to RBI -

[Notification No. 33/2017 CT ® dated 13.10.2017 & Notification No. 34/2017 IT ® dated 13.10.2017]

  1. GST to be payable under RCM on renting of immovable property by CG/ST, Union Territory or LA to a registered person -

[Notification No. 3/2018 CT ® dated 25.01.2018 & Notification No. 3/2018 IT (R) dated 25.01.2018]

  1. Clarification in respect of Services provided by advocates or firm of advocates to any business entity located in the taxable territory -

[Notification No. 13/2017 CT ® dated 28.06.2017 & 10/2017 IT (R) dated 28.06.2017]

Note - Earlier RCM is given only for representational services. But now the scope has been widened to all Legal Services.

  1. Clarification in respect of supply made by unregistered person to a registered person -

However, the above concept shall not be applicable for supplies made between 13.10.2017 to 31.3.2019.

 

  1. Clarification on the classification of Cut Pieces of Fabrics under GST (unstitched salwar suits) -

[Circular No. 13/3/2017 GST dated 27.10.2017]

Issue - Whether cutting of fabrics from the bundles or thans and sold in that unstitched state change their classification.

 

Clarification - The council has decided that mere cutting of fabric into pieces of different lengths from bundles or thans, will not change the nature of these goods and such pieces would continue to be classifiable under the respective headings as the fabric.

 

  1.  Clarification regarding applicability of Section 16 of the IGST Act 2017, relating to zero rated supply for the purpose of compensation cess on exports -

[Circular No. 01/01/2017 CC dated 26.07.2017]

The provisions of section 16 of the IGST Act, 2017, relating to zero rated supply will apply mutatis mutandis for the purpose of compensation cess (wherever applicable), that is to say -

Exemptions From GST

New Exemptions added under GST by the notification dated 28.06.2017 -

1.Supply of Services by way of right to admission to the events organised under FIFA U-17 world cup 2017 exempted from CGST.
2.Supply of Services associated with transit cargo to Nepal and Bhutan (landlocked countries) have been exempted from CGST.
3.Supply of services by a CG, SG, Union territory, and LA by way of an activity in relation to any function entrusted to a Panchayat under article 243G of the constitution, have also been exempted from CGST.
4.Supply of service by a Govt Entity to CG, SG, Union Territory, LA, or any person specified by Govt. against any consideration in the form of grants have been exempted from CGST.
21A.Supply of Services provided by GTA to an unregistered person, including an unregistered casual taxable person other than following recipients -

  1. Any factory registered under Factories Act, 1948 or
  2. Any society registered under Societies Registration Act, 1860 or under any other law for the time being in force in any part of India or
  3. Any cooperative society established by or under any law for the time being in force or
  4. Any body corporate established by or under any law including association of persons.
  5. Any partnership firm whether registered or not under any law including association of persons.
  6. Any casual taxable person registered under the CGST Act or the IGST Act or the SGST Act or UTGST Act.

Have been exempted from GST.

23A.Supply of service by way of access to a road or a bridge on payment of annuity, has been exempted from GST.
7.In respect of services by way of granting of long term lease of 30 years, or more of industrial plots or plots for development of infrastructure for financial business, provided by the State Govt Industrial Development Corporations or undertaking or by any other entity having 50% or more ownership of CG, SG, UN, to the Industrial units of Developers in any industrial or Financial business area have been exempted from CGST.
11B.Services provided by Fair price Shops to CG by way of sale of wheat, rice and coarse grains, kerosene, sugar, edible oil, etc under Public Distribution System (PDS) against consideration in the form of commission or margin exempt from CGST.
19AServices by way of transportation of goods by an aircraft from custom station of clearance in India to a place outside India (this serial number shall not apply after 30th sep 2018)
22.Services by way of giving on hire -

  1. To a state transport undertaking, a motor vehicle meant to carry more than 12 passengers or;
  2. To a goods transport agency, a means of transportation of goods.
  3. Motor vehicle for transport of students, faculty and staff, to a person providing services of transportation of students, faculty and staff to an educational institution providing services by way of pre-school education upto higher secondary school or equivalent.
29A.Services of Life insurance provided or agreed to be provided by the Naval Group Insurance Fund to the personnel of Coast Guard under the Group Insurance schemes of the CG.
36.Services of Life Insurance business provided under following schemes -

  1. Janashree Bima Yojana
  2. Aam Aadmi Bima Yojana
  3. Life Micro insurance product as approved by the Insurance Regulatory and Development Authority, having maximum amount of cover of Two Lakh Rupees.
  4. Varishtha Pension Bima Yojana
  5. Pradhan Mantri Jan Dhan Yojana
  6. Pradhan Mantri Jeevan Jyoti Bima Yojana
  7. Pradhan Mantri Vaya Vandan Yojana.
36A.Services by way of reinsurance of the insurance schemes specified in the serial number 35 or 36.
39A.Services by an Intermediary of Financial Services located in a multi services SEZ with International Financial Services Centre (IFSC) status to a customer located outside India for International Financial services in currencies other than Indian Rupees (INR).
53A.Services by way of fumigation in a warehouse of agriculture produce.
65A.Services by way of providing information under the Right to Information Act, 2005 (22 of 2005).
66.Services Provided -

  1. By an educational institution to its students, faculty and staff:
  2. By an educational institution by way of conduct of entrance examination against consideration in the form of entrance fee.
  3. To an educational institute by way of transportation facility to students, faculty and staff, catering services including mid day meals sponsored by CG, SG, or Union Territory, security or cleaning or Housekeeping services performed in such educational institutions.
  4. Services related to admission to, or conduct of examination by such institutions.
  5. Supply of online educational journals or periodicals

Except to an institution providing services by way of -

(i) Pre-school education and education upto higher secondary school or equivalent or

(ii) education as a part of an approved vocational education course.

77Services by an unincorporated body or non - profit entity registered under any law for the time being in force, to its members by way of reimbursement of charges or share of contribution -

  1. As a trade union.
  2. For the provisions of carrying out any activity which is exempt from the levy of Goods and service tax.
  3. Upto an amount of Rs 7500/- per month per member for sourcing of goods or services from a third person for the common use of its members in a housing society or a residential complex.
79AServices by way of admission to a protected monument so declared under the Ancient Monuments and Archaeological sites and Remains Act 1958 or any of the state acts for the time being in force.
81Services by way of right to admission to -

  1. Circus, dance, or theatrical performance including drama or ballet.
  2. Award function, concert, pageant, musical performance or any sporting event other than a recognised sporting event.
  3. Recognised sporting event.
  4. Planetarium

Where the consideration for admission is not more than 500 per person as referred to in (a), (b),(c) and (d) above.

 

Other Exemptions -

 

  • Grant of License or Lease to Explore or Mine Petroleum Crude or Natural Gas or Both -

 

The inter state supply of services by way of grant of license or lease to explore or mine petroleum crude or natural gas or both, has been exempted from CGST which is leviable on the consideration paid to the CG in the form of their share of profit as defined in the contract entered into by the CG in this behalf.

 

  1. Royalty and License Fee to the extent included in the transaction value under Rule 10(1)(c) of Customs Valuation Rules, 2007 has been exempt from IGST.

 

  1. Milling of Paddy into Rice is not eligible for exemption under Entry 55 of the Notification and corresponding notification issued under IGST and UTGST Acts by circular no. 28/02/2018 GST dated 08.01.2018.

 

  1. Clarification on Hotel Accommodation Services  by Trusts to Students -

  1. Clarification on Health Services -

  1. Services provided by College Hostel Mess has been exempt from GST.

 

  1. Clarification on the GST applicability on Electricity Charges -

Electricity charges has been exempt from GST but expect the below given things -

 

  1. Application fee for releasing connection of electricity.
  2. Rental Charges against metering equipment.
  3. Testing fees for meters/transformers, capacitors etc.
  4. Labour charges from customers for shifting of meters or shifting of service lines.
  5. Charges for duplicate bill.

 

  1. Guarantee provided by SG/CG to any business entity including PSUs is taxable under GST.

Place of Supply

 

  1. Clarification on Supply of satellite launch services by ANTRIX corporation Ltd.

 

[Circular No. 2/1/2017 IGST dated 27.09.2017]

Time of Supply

 

  1. Clarification on GST payable on advance received by the assessee registered under Regular scheme -

 

[Notification No. 40/2017 CT dated 13.10.2017]

The council has decided that No GST will be leviable on advance received by the assessee’s who are registered under Regular Scheme. Earlier, this benefit was available only to the assessees whose turnover in the preceding Financial Year does not exceed 1.5 crores. This amendment has become effective from 15.11.2017. In other words, time of supply will be the time of issue of invoice without any turnover limit.

  1. Liability to pay GST in case of TDR in lieu of construction service and on construction service in lieu of TDR has been deferred till possession/right in the property is transferred to the land owner by entering into a conveyance deed/similar instrument.

Value of Supply

 

  1. Rule 31A - Clarification in respect of Value of Supply in case of Lottery and Actionable claim in the form of chance to win in betting, gambling or horse racing in a race club -

 

[Notification No. 3/2018 CT dated 23.01.2018]

Here,

  1. Lottery run by “State Governments” means a lottery not allowed to be sold in any State other than the organizing State,
  2. “Lottery authorised by State Governments” means a lottery which is authorised to be sold in States other than organising states also.
  3. “Organising State” has the same meaning as assigned ti it in clause (f) of sub-rule (1) of rule 2 of the Lotteries (Regulation) Rules, 2010.

Input Tax Credit

 

  1. Extension of the time period for submitting the details of the challan relating to Job Work under Rule 45(3) of CGST Rules

 

[Notification No. 51/2017 CT dated 28.10.2017]

Rule 45(3) has been amended to empower the CGST Commissioner or SGST/UTGST Commissioner to grant extension of time period for furnishing of the said details. Thus, now the said details may be furnished on or before the 25th day of the month succeeding the said quarter or within such further period as may be extended by the commissioner by a notification in this behalf.

  1. Value of Exempt Supplies shall exclude -

[Notification No. 55/2017 CT dated 15.11.2017]

  1. i) Supply of Services having place of supply in Nepal and Bhutan where the payment is made in INR.
  2. ii) Value of services by way of accepting deposits / extending loans or advances against interest / discount, except banks/financial institutions/NBFCs

iii) Value of Services by way of transportation of goods by a vessel from the custom station of clearance in India to a place outside India.

  1. Clarification in case of goods sent from one Job Worker to another Job worker -

[Notification No. 14/2018 CT dated 23.03.2018]

Rule 45(1) of CGST Rules provides that the inputs/capital goods required to be sent to the Job worker directly or from the premises of principal owner under the cover of a challan issued by the principal.

The rule has been extended to cover the goods which are sent from one job worker to another job worker, the challan may be issued either by the principal or the Job worker sending the goods to another job worker.

Where the goods are sent by one job worker to another or are returned to the Principal, the challan issued by the Principal may be endorsed by the Jon worker, indicating therein the quantity and description of goods. Such endorsed challan may be further endorsed by another job worker indicating therein the quantity and description of goods.

Registration

  1. Persons making inter-state supplies of taxable services upto Rs 20,00,000 exempted from obtaining registration. However, this limit is Rs 10,00,000 in special category states except Jammu and Kashmir.

       [Notification No. 10/2017 IT dated 13.10.2017]

Special Category States -

  1. Arunachal Pradesh
  2. Manipur
  3. Mizoram
  4. Sikkim
  5. Himachal Pradesh
  6. Assam
  7. Meghalaya
  8. Nagaland
  9. Tripura
  10. Uttarakhand

 

  1. Persons making supplies of services through an E-commerce operator (other than supplies specified under section 9(5) of the CGST Act) and having aggregate turnover up to Rs 20,00,000 has been exempt from obtaining registration (10 Lakhs in special category states).

[Notification No. 65/2017 CT dated 15.11.2017]

  1. Rule 19 of the CGST Rules, 2017 has been amended to provide that effective date of amendment in registration details can be earlier than the date of submission of the application for amendment only when the commissioner orders the same for reasons to be recorded in writing.

[Notification No. 75/2017 CT dated 29.12.2017]

  1. Rule 20 of CGST Rules has been amended to provide that a person can apply for cancellation of voluntary registration even within one year from the date of obtaining voluntary registration.

[Notification No. 3/2018 CT dated 23.01.2018]

Tax Invoice, Credit and Debit Notes

  1. A new rule 46A has been inserted in CGST Rules to provide that 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.

[Notification No. 45/2017 CT dated 13.10.2017]

  1. Rule 54(2) of the CGST Rules has been amended to provide that in place of tax invoice, a consolidated invoice may be issued for the supply of services made during a month at the end of the month.

[Notification No. 45/2017 CT dated 13.10.2017 & Notification No. 55/2017 CT dated 15.11.2017]

  1. The person-in-charge of the conveyance shall carry a copy of the tax invoice/bill of supply where such person is not required to carry an e-way bill.

[Notification No. 3/2018 CT dated 23.01.2018]

  1. Clarification on issues wherein the goods are moved within the State or from the State of Registration to another State for Supply on approval basis -

[Circular No. 10/10/2017 GST dated 18.10.2017]

Issue - Sometimes registered suppliers have to visit other states and need to carry goods along for approval. In such cases, they can issue tax invoice only at the time of supply where the buyer approved the goods. Since the suppliers are not able to ascertain actual supplies beforehand and while ascertainment of tax liability in advance is a mandatory requirement for registration as a casual taxable person, the supplier is not able to register as a casual taxable person. Such goods are also carried within the same state for the purposes of supply.

Clarification - In this matter, clarification has been given as follows -

Here the council clarifies that the goods which are taken for supply on approval basis can be moved from one place of business of the registered supplier to another place either in the same state or outside the state on a delivery challan along with the e-way bill wherever applicable and the invoice may be issued at the time of delivery of goods. For this purpose, the person carrying the goods for such supply can carry the invoice book with him so that he can issue the invoice once the supply is fructified.

Returns under GST

[Notification Nos. 57 & 58/2018 CT dated 15.11.2017 as amended, Notification Nos. 17 & 18/2018 CT dated 28.03.2018 & Notification No. 16/2018 CT 23.03.2018]

Refunds under GST

  1. The CG has specified that the Canteen Stores Department (CSD) under the Ministry of Defence, as a person who shall be entitled to claim a refund of 50% of the applicable CGST paid by it on all inward supplies of goods received by it for the purposes of subsequent supply of such goods to the Unit Run Canteens of the CSD or to the authorised customers of the CSD.

[Notification No. 6/2017 CT (R) dated 28.06.2017]

Parallel amendment has also been made in the IGST law so as to grant refund of 50% of IGST paid on inward supplies of goods received by CSD.

[Notification No. 6/2017 IT (R) dated 28.06.2017].

Law effective from 01.07.2017.

  1. Sec 55 of the CGST Act  empowers the Govt. to notify specialised agencies entitled to claim refund of GST paid on notified supplies by the CG.

[Notification No. 16/2017 CT (R) dated 28.06.2017] in respect of CGST.

[Notification No. 13/2017 IT (R) dated 28.06.2017] in respect of IGST.

Law effective from 01.07.2017.

  1. Third proviso of Rule 89(1) of the CGST Rules has been amended to enable the supplier of deemed export supplies to file application for refund if the recipient does not avail of input tax credit on such supplies and furnishes an undertaking to the effect that the supplier may claim the refund.

[Notification No. 47/2017 CT dated 18.10.2017]

  1. Evidences to be produced by the supplier of deemed exports for claiming refund, notified -

[Notification No. 49/2017 CT dated 18.10.2017]

Rule 89(2)(g) of the CGST Rules provides that where refund is on account of deemed exports, then the refund application shall be accompanied by a statement containing the number and date of invoices along with other notified evidences. Following are the notified evidences by the CG -

(i) Acknowledgement by the Jurisdictional Tax Officer of the Advance Authorisation (AA) or EPCG Authorisation Holder, as the case may be, that the said deemed export have been received by the said AA or EPCG Authorisation Holder, or a copy of the tax invoice under which such supplies have been made by the supplier, duly signed by the recipient EOU that said deemed export supplies have been received by it.

(ii) An undertaking by the recipient of deemed export supplies that no input tax credit on such supplies has been availed by him.

(iii) An undertaking by the recipient of deemed export supplies that he shall not claim the refund in respect of such supplies and the supplier may claim the refund.

  1. Formula for computing refund of ITC in case of Zero rated supply under rule 89(4) of CGST Rules -

Rule 89(4) specified that in case of zero rated supply of goods or services or both without payment of tax under bond/LUT in accordance with the provisions of Section 16(3) of the IGST Act, 2017 refund of ITC shall be granted as per the following formula -

Refund Amt -(T/o of Zero rated supply of Goods + T/o of Zero rated supply of services X Net ITC)/Adjusted Total T/o

Where,

  1. T/o is turnover
  2. “Refund Amount” means the maximum refund that is admissible.
  3. “Net ITC” means ITC availed on inputs and input services during the relevant period other than ITC for which refund is claimed under sub-rule 4A or 4B or both.
  4. Turnover of Zero rated supply of goods” means the value of zero rated supply of goods made during the relevant period without payment of tax under bond / LUT other than turnover of supplies in respect of which refund is claimed under sub-rule 4A or 4B or both.
  5. Turnover of Zero rated supply of services” means the value of zero rated supply of services made without payment of tax under bond or LUT, calculated the following manner, namely:-

Zero rated supply of services is the aggregate of the payments received during the relevant period for zero-rated supply of services and zero rated supply of services where supply has been completed for which payment had been received in advance in any period prior to the relevant period reduced by advances received for zero-rated supply of services for which the supply of services has not been completed during the relevant period.

 

(F) “Adjusted total turnover” means the turnover in a State or Union Territory, as defined under section 2(112), excluding -

  1. The value of exempt supplies other than zero-rated supplies and
  2. The turnover of supplies in respect of which refund is claimed under sub-rules (4A) or (4B) or both, if any,

During the relevant period;

(c) “Relevant period” means the period for which the claim has been filed.

  1. Refund of Integrated Tax paid on Export of Goods or Services Under Bond or Letter of Undertaking (LUT) [Rule 96A]

Any registered person availing the option to supply goods/services for export within payment of IGST shall furnish, prior to export, a bond/LUT in prescribed form to the jurisdictional Commissioner, binding himself to pay the tax due along with the interest specified under section 50(1) @ 18% p.a. Within a period of -

 

  1. 15 days after the expiry of 3 months or such further period as notified by Commissioner from the date of issue of the invoice for export, if the goods are not exported out of India or
  2. 15 days after the expiry of one year, or such further period as may be allowed by the commissioner from the date of issue of the invoice for export, if the payment of such services is not received by the exporter in convertible foreign exchange. [Rule 96A(1)]

 

Where the goods are not exported within the time specified in rule 96A(1) and the registered person fails to pay the amount mentioned in said sub-rule, the export as allowed under bond/LUT shall be withdrawn forthwith and the said amount shall be recovered from the registered person.

 

7 Refund under GST can be claimed in the following situations also-

 

(i) IGST paid by the tourist leaving India on any supply of goods taken out of India by him [Section 15 of IGST Act].

 

(ii) Refund of any balance in the electronic cash ledger after payment of tax, interest, penalty, fee or any other amount payable under this Act or the rules made there under may be claimed. [Section 49(6)].

 

(iii) Refund on account of issuance of refund vouchers for taxes paid on advances [Section 31(3)].

 

(iv) Refund of tax wrongly collected and paid to the Govt. [i.e. CGST & SGST paid by treating the supply as intra-state supply which is subsequently held as inter-state supply and vice-versa [Section 77 of the CGST Act and Section 19 of the IGST Act].

 

(v) Refund can also be claimed as a consequence of Judgment, decree, order or direction of the Appellate Authority, Appellate Tribunal or any court.

 

(vi) If the assessed tax on Final Assessment is less than the tax deposited by the assessee on finalization of provisional assessment, the assessee can claim refund of such excess deposited [Section 60].

 

(vii) GST become refundable on purchase on purchase made by UN bodies or embassies etc. [Section 54(2)].

 

(viii) Goods/Services/Both are exported or supplied to SEZ developer/unit, on payment of IGST and refund of such IGST paid can be claim as refund.

 

(ix) A registered person may claim refund of any unutilised input tax credit (ITC) at the end of any tax period in the following cases -

 

  1. Zero rated supplies: Supply of goods/services/both to an SEZ developer/unit or export of Goods/Services or Both.
  2. Accumulated ITC on account of inverted duty structure: 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 exempted supplies), except supplies of Goods/ Services/Both as may be notified by the Govt. on the recommendations of the council.

 

However, refund of unutilized ITC shall NOT be allowed if:

 

  1. The goods exported out of India are subject to export duty;
  2. The supplier has availed the drawback in respect of CGST or claims refund of the IGST paid on such supplies.

Job Work

 

  1. Clarification on issues related to Job Work -
    [Circular No. 38/12/2018 dated 26.03.2018]

    1. Scope/ambit of Job Work -It has been clarified that Job worker can also use his own goods for providing the services of Job work in addition to the goods received from the principal.
    2. Requirement of Registration for the Principal / Job Worker -
      But where the Principal and Job worker is located in different states, we have to take the reference of Sec 24 which provides compulsory registration of suppliers making any inter-state supplies. But, an exemption has been granted from registration for the suppliers making an inter-state supply of services where the aggregate turnover of the inter-state supply of taxable services does not exceed Rs 20 Lakhs or Rs 10 Lakhs in case of special category states except Jammu and Kashmir vide Notification No. 10/2017 - Intergrated Tax dated 13.10.2017.Thus, with the above clarification it is clarified that Job Worker is required to obtain registration only where his aggregate turnover, to be computed on all India basis in a F.Y. exceeds the threshold Limit regardless of whether the principal and Job worker is located in the same or different states.

 

3). Supply of Goods by the Principal from the premises of Job Worker will be regarded as supply by the principal and not by Job Worker specified in Sec 143(1)(a) of the CGST Act..

 

4). Documents and intimation required at the time of movements of goods by the Principal from Job Worker -

Responsibility of Principal - It has been clarified that principal is responsible to include the details of challans relating to goods sent by him to one or more Job Worker or from one Job Worker to another Job Worker and its return therefrom during a quarter in Form GST ITC - 04 by the 25th day of the month succeeding the Quarter or within such period as may be extended by the Commissioner.

E-Way Bill

The third proviso of Rule 138(1) of the CGST Rules provides that the e-way bill shall be generated either by the Principal or by the registered Job Worker irrespective of the value of consignment, where the goods are sent by the principal located in one state/UT to a job worker located in any other State/UT.

 

5). Liability to issue invoice, determination of place of supply and payment of GST -

 

The job worker is liable to pay GST on the JOB work services if he is liable to register. He shall issue an invoice at the time of supply of his services as determined in terms of section 13 read with section 31 of the CGST Act. The value shall not include only the service charges but also the value of any goods or services used by him for supplying the Job work services, if recovered from the principal.

 

i). Whether value of moulds, dies, jigs, fixtures or tools which have been provided by the principal to the job worker and have been used by the latter for providing job work services would be included in the value of job work services?

 

In this regard, Sec 15 of the CGST Act lays down the principal for determining the value of supply under GST. By referring this section, it has been clarified that the value of above moulds, dies etc may not be included in the value of Job work services provided its value has been factored in the price for the supply of such services by the job worker.

 

Where the job worker is not registered, GST would be payable by the principal on Reverse charge basis in terms of the provisions contained in section 9(4) of the CGST Act. However, the said provision has been kept in abeyance for the time being.

ii).  Supply of Goods by the Principal from the Place of Business/premises of Job Worker-

 

Sec 143 of the CGST Act provides that the principal may supply from the place of business/premises of a job worker inputs after completion of job work or otherwise or capital goods within one year or three years respectively of their being sent out, on payment of tax within India, or with or without payment of tax for exports as the case may be. But this facility is available to the principal only if he declares Job worker’s place of business as his additional business place.

 

As the supply is made by the principal, hence the time, value and place of supply would have been determined in the hands of principal irrespective of the location of the Job worker’s place of business/premises. Further, the invoice would have been issued by the principal. In case of exports, LUT or bond shall be executed by the principal.

iii) Supply of waste and scrap generated during the Job work -

Sec 143(5) of the CGST provides that waste and scrap generated during the job work may be supplied by the registered job worker directly from his place or by the principal in case Job worker is not registered.

 

iv) Violation of conditions laid down in section 143 -  

If the inputs or Capital Goods are neither returned not supplied from the Job worker’s place of business / premises within specified period of time, the principal would issue an invoice for the same and declare such supplies in his return for that period month in which the time period of 1 year/3 years expired.

The date of supply shall be deemed to be the date where the inputs or capital goods were initially sent to the Job worker and interest for such intervening period shall also be payable.

 

If the Job worker returned the goods after the stipulated time period, the same would considered as supply by the Job worker to the principal and he is liable to pay GST if registered.

If Job worker is not registered then GST would be payable by the principal under Reverse Charge Basis in terms of sec 9(4) of the CGST Act.

However, the said provision has been kept in abeyance for the time being.

 

(6) Availability of input tax credit to the Principal and Job worker -

As per Sec 16(2) clause (b) of the CGST Act, ITC would be available to the Principal, irrespective of the fact that whether inputs and capital goods are received by the principal and then sent to the job worker for processing etc. or whether they are directly received at the job worker’s place of business/premises, without being brought to the premises of the principal.

 

It is also clarified that the job worker is also eligible to avail ITC on inputs, etc. used by him in supplying the job work services if he is registered.

Demand and Recovery

  1. Circular specifying proper officers under sections 73 and 74 of the CGST Act and under the IGST Act and fixing monetary limits for issuance of show cause notices by different level of officers

 

[Circular No. 31/05/2018 GST dated 09.02.2018]

SI No.CGST OfficerMonetary limit of CGST (including cess) not paid or short paid or erroneously refunded or ITC of CGST wrongly availed or utilized for issuance of SCNs and passing of orders under sections 73 and 74 of CGST ActMonetary Limit of IGST (including cess) not paid or short paid or erroneously refunded or ITC of IGST wrongly availed or utilized for issuance of SCNs and passing of orders under sections 73 and 74 of CGST Act made applicable to matters in relation to IGST vide section 20 of the IGST Act.Monetary Limit of CGST and IGST (including cess) not paid or short paid or erroneously refunded or ITC of CGST and IGST wrongly availed or utilized for issuance of SCNs and passing of orders under sec 73 and 74 of CGST Act made applicable to IGST vide section 20 of the IGST Act.
(1)(2)(3)(4)(5)
1.Superintendent of Central TaxNot exceeding Rupees 10 LakhNot exceeding Rupees 20 Lakh.Not exceeding Rupees 20 Lakh.
2.Deputy or Assistant Commissioner of Central TaxAbove Rupees 10 Lakh and not exceeding Rupees 1 crore.Above Rupees 20 Lakh and not exceeding Rupees 2 Crores.Above Rupees 20 Lakh and not exceeding Rupees 2 crores.
3.Additional or Joint Commissioner of Central TaxAbove Rupees 1 Crores without any limitAbove Rupees 2 crores without any limitAbove Rupees 2 crores without any limit.

 

Appeals and Revision

 

  1. Appointment of Appellate Authority

 

[Notification No. 55/2017 CT dated 15.11.2017]

A new rule 109A has been inserted in CGST Rules to appoint Appellate Authority as under:

Miscellaneous Provisions

 

  1. Deemed Exports Notified -

 

Sec 147 of the CGST Act Lays down the provisions for deeming certain supplies as exports -

  1. Provisions relating to order of Anti-Profiteering Authority -

[Notification No. 14/2018 CT dated 23.03.2018]

A new sub-rule (4) has been inserted in rule 133 of CGST Rules to provide that if the report of the Director General of Safeguards recommends that there is a contravention of even non-contravention of the provisions of Section 171 or these rules, but the Authority is of the opinion that further investigation or inquiry is called for in the matter, it may, for the reasons to be recorded in writing, refer the matter to the Director General of Safeguards to cause further investigation or inquiry in accordance with the provisions of the Act and these rules.