GST Update

Weekly Update
29.07.2017

1
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
22.07.2017. 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 )
 Amendment in CGST Rules

• Rule 24, 34, 44, 46, 61, 83 and 89 of the CGST Rules, 2017 has
been amended by Notification No. 17/2017 – Central Tax
dated 27th July, 2017.
• Minor amendments have also been made in FORM GST TRAN-
1 & 2 vide above Notification, text of which is available at the
link below -
• http://www.cbec.gov.in/resources//htdocs-cbec/gst/notfctn-
17-central-tax-english.pdf
• The changes are discussed in the following slides.

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 )
 Rule 24(4)

• OLD : (4) Every person registered under any of the existing

laws, who is not liable to be registered under the Act may,
within a period of thirty days from the appointed day, at his
option, submit an application electronically in FORM GST REG-
29 at the common portal for the cancellation of registration
granted to him and the proper officer shall, after conducting
such enquiry as deemed fit, cancel the said registration.
• CHANGE : For the words “within a period of thirty days from
the appointed day”, the words and figures “on or before 30th
September, 2017” shall be substituted;

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 )
 Rule 34 : Exchange Rate
• Rule 34 of CGST Rules (Old) :
“34. Rate of exchange of currency, other than Indian
rupees, for determination of value.-
Rate of exchange of currency, other than Indian rupees, for
determination of value.- The rate of exchange for the
determination of the value of taxable goods or services or both
shall be the applicable reference rate for that currency as
determined by the Reserve Bank of India on the date of time of
supply in respect of such supply in terms of section 12 or, as the
case may be, section 13 of the Act.”

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 )
 Rule 34 : Exchange Rate
• Amended Rule 34 of the CGST Rules, 2017
“34. Rate of exchange of currency, other than Indian
rupees, for determination of value.-
(1) The rate of exchange for determination of value of
taxable goods shall be the applicable rate of exchange as notified
by the Board under section 14 of the Customs Act, 1962 for the
date of time of supply of such goods in terms of section 12 of the
Act.
(2) The rate of exchange for determination of value of
taxable services shall be the applicable rate of exchange
determined as per the generally accepted accounting principles
for the date of time of supply of such services in terms of section
13 of the Act.”;
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 )
 Rule 44. Manner of reversal of
credit under special circumstances-

• In Rule 44, with effect from 1st July, 2017, for sub-rules (2)
and (3), the following shall be substituted, namely:-
“(2) The amount, as specified in sub-rule (1) shall be
determined separately for input tax credit of central tax, State
tax, Union territory tax and integrated tax.
(3) Where the tax invoices related to the inputs held in stock
are not available, the registered person shall estimate the
amount under sub-rule (1) based on the prevailing market price
of the goods on the effective date of the occurrence of any of the
events specified in sub-section (4) of section 18 or, as the case
may be, sub-section (5) of section 29.”
• Portion in green above added
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 )
 Rule 46 (Invoice)
• In Rule 46 of CGST Rules,2017, for the third proviso, the
following proviso has been be substituted, namely:- “Provided
also that in the case of the export of goods or services, the
invoice shall carry an endorsement “SUPPLY MEANT FOR
EXPORT/ SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR
AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX”
or “SUPPLY MEANT FOR EXPORT/ SUPPLY TO SEZ UNIT OR SEZ
DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR
LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED
TAX”, as the case may be, and shall, in lieu of the details
specified in clause (e), contain the following details, namely,- (i)
name and address of the recipient; (ii) address of delivery; and
(iii) name of the country of destination:”;
• Portion in green above added to take care of supplies to SEZs
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 )
 Rule 61 ( Filing of returns )

• Deferment of GST Returns for the month of July and August,

2017:
• Rule 61 (5):
• “Where the time limit for furnishing of details in FORM GSTR-1
under section 37 and in FORM GSTR-2 under section 38 has
been extended and the circumstances so warrant, the
Commissioner may, by notification, specify that return shall be
furnished in FORM GSTR-3B electronically through the
common portal, either directly or through a Facilitation Centre
notified by the Commissioner. “

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 )
 Rule 61 ( Filing of returns)
Contd.-

• Rule 61 (6): Where a return in FORM GSTR-3B has been

furnished, after the due date for furnishing of details in FORM
GSTR-2—
• (a) Part A of the return in FORM GSTR-3 shall be electronically
generated on the basis of information furnished through
FORM GSTR-1, FORM GSTR-2 and based on other liabilities of
preceding tax periods and PART B of the said return shall be
electronically generated on the basis of the return in FORM
GSTR-3B furnished in respect of the tax period;

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 N10
arcotics (NACIN)
 Rule 61 ( Filing of returns)
Contd.-

• (b) the registered person shall modify Part B of the return in

FORM GSTR-3 based on the discrepancies, if any, between the
return in FORM GSTR-3B and the return in FORM GSTR-3 and
discharge his tax and other liabilities, if any;

• (c) where the amount of input tax credit in FORM GSTR-3

exceeds the amount of input tax credit in terms of FORM GSTR-
3B, the additional amount shall be credited to the electronic
credit ledger of the registered person.”;

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
arcotics (NACIN)
 Other changes
• Rule 83:
In Rule 83, with effect from 1st July, 2017, in sub-rule (3), in the second
proviso, for the word “sub-section”, the word “sub-rule” shall be substituted;
• Rule 83 :
In Rule 89, with effect from 1st July, 2017, in sub-rule (4), in clause (E),
for the word “sub-section”, the word “clause” shall be substituted;
• FORM GST TRAN-1 :
In FORM GST TRAN-1, with effect from 1st July, 2017, in Sl. No. 7, in Table
(a), for the heading of column (2), the heading “HSN as applicable” shall be
substituted;
• FORM GST TRAN-2 :
In FORM GST TRAN-2, with effect from 1st July, 2017, in Sl. No. 4 and 5,
in the Table, for the heading of column (1), the heading “HSN as applicable”
shall be substituted.

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 N12
arcotics (NACIN)
 Circular No. 01/2017-Compensation
Cess dated 26th July, 2017

• Provisions of section 16 of the IGST Act, 2017, relating to zero

rated supply will apply mutatis mutandis for the purpose of
Compensation Cess
• Exporter will be eligible for refund of Compensation Cess paid
on goods exported by him [on similar lines as refund of IGST
under section 16(3) (b) of the IGST, 2017]; or
• No Compensation Cess will be charged on goods exported by an
exporter under bond and he will be eligible for refund of input
tax credit of Compensation Cess relating to goods exported [on
similar lines as refund of input taxes under section 16(3) (a) of
the IGST, 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 N13
arcotics (NACIN)
 Anti Profiteering Authority

• http://www.cbec.gov.in/resources//htdocs-cbec/press-
release/CBEC%20Press%20Release%20dt%2025.07.2017%20o
n%20Ant-Profiteering%20Authority.pdf
• GST Council has formed a Selection Committee to identify and
recommend eligible persons for appointment as Chairman and
Members of the National Anti-profiteering Authority under
GST.
• APA will have one chairman and four technical members
• Empowered to refer cases to DG, Safeguards, CBEC for
detailed investigations

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 N14
arcotics (NACIN)
 AIR of Drawback

• http://www.cbec.gov.in/resources//htdocs-cbec/customs/cs-circulars/cs-circulars-
2017/circ32-2017cs.pdf and http://www.cbec.gov.in/resources//htdocs-
cbec/customs/cs-act/notifications/notfns-2017/cs-nt2017/csnt73-2017.pdf

• Note and Condition 12A of Notification 131/2016-Cus (N.T.)

dated 31.10.2016 by Notification 73/2017- Cus (N.T.) dated
26.7.2017 and the requirement of the certificate from GST
officer to claim higher rate of drawback dispensed with.
• Self-declaration by exporter to be taken
• Change effective w.e.f 1st July, 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 N15
arcotics (NACIN)
 AIR of Drawback

• Export goods which had been cleared from factory,

warehouse, etc. prior to 1.7.2017 but let export order has not
been issued before 1.7.2017. Such goods are not supplies
under GST and accordingly, said Note and Condition 12A is not
applicable.
• For such goods, the declaration from exporter or certificate
from the then Central Excise officer as applicable in terms of
Note and Condition 12 of said Notification No. 131/2016-
Customs (NT) shall continue.

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
arcotics (NACIN)
 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 N17
arcotics (NACIN)
 THANK YOU

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