GST News update 1st week of August 2017

  1. The Central Board of Excise and Customs (CBEC) said sarees are treated as fabric and it remains so even after embroidery, so sarees whether designer or embroidered, will attract GST at five per cent.
  2. No GST on reimbursement of expenses by company to its employee clarify through tweeter.
  3. Exporter will be eligible for Refund of GST Compensation cess on goods exported by him: Govt. clarifies.
  4. Aerated waters, containing added sugar or other sweetening matter or flavoured including Lemonade, soft drinks falls under HSN code 220210 at 28% plus 12% compensation cess.
  5. In case on renting of immovable property if a place of supply and location of supplier is in different state than it would be treated as interstate transaction and would be liable to IGST, if place of supply and location of supplier is same than it would be liable to CGST plus SGST.
  6. The rate of exchange for the determination of the value of supply of goods shall be determine as per Custom Regulations and for the supply of services as per the Generally accepted accounting principl
  7. In case of reversal of Input Tax Credit, the amount of input tax credit relating to inputs held in stock shall be determined separately for input tax credit of central tax, State tax, Union territory tax and integrated tax.
  8. The Government has extended date for cancellation of provisional GST registration from 30 July 2017 to 30 September 2017.
  9. In case of supply made to SEZ, on the invoice, the following endorsement needs to be made: “SUPPLY MEANT FOR SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS ON PAYMENT OF INTEGRATED TAX” or “SUPPLY MEANT FOR SUPPLY TO SEZ UNIT OR SEZ DEVELOPER FOR AUTHORISED OPERATIONS UNDER BOND OR LETTER OF UNDERTAKING WITHOUT PAYMENT OF INTEGRATED TAX”.
  10. Procedural clarification regarding filing of GST Return in Form GSTR 3B:
    1. Even after filing Form GSTR 3B, there will be an auto generated Form GSTR 3 wherein Part A shall be generated based on information furnished in Form GSTR 1 & Form GSTR 2 and Part B shall be generated based on information furnished in Form GSTR 3B.
    2. A registered person has an option of modifying details in Part B of Form GSTR 3 in case if there is any discrepancy between return in Form GSTR 3B & Form GSTR 3 and shall discharge his tax & other liabilities, if any.
    3. In case there is excess input tax credit based on Form GSTR 3 as against claimed in Form GSTR 3B, such excess credit would be credited to electronic ledger of the registered person.
  11. Government issues FAQ on queries related to GST rates received from various sectors on 24th July,2017.
  12. Invoice uploading opens on GSTN.
  13. As per the details provided in GSTR 1 we have to maintain various accounts separately such as:
    1. Summary of B2B
    2. Summary of B2CL( Business to Customer Large for interstate supplies with invoice value up to Rs. 2.5 Lakhs made to unregistered person for each rate of tax)
    3. Summary of B2CS( Business to Customer Small other than above)
    4. Credit note and Debit notes for unregistered and registered to be prepare separately.
    5. Advance Adjustment account for tax already paid on advance receipt of consideration and invoices issued in the current period for the supplies.
    6. List of various documents issued during the tax period. 

For the above purpose we have to prepare various ledgers in our accounting software.

  1. FAQ for Textiles issued by Government. Some of the key highlights are as follow:
    1. Registered person buying raw cotton from agriculturist has to pay GST under RCM.
    2. Unutilized Input credit due to the difference of GST rates on input and outward supplies will remain in electronic ledger only, no refund of unutilized input credit.
    3. If a manufacturing assesee also carries out job work for its customer and uses its own raw material for the job work than assesee has to issue invoice of value including raw materials plus labour charges plus profit, than GST will be charged on total value. An assesse would be eligible for the credit on raw material used in job work.
    4. GST rate on fabrics is 5% irrespective of composition.
  2. West Bengal government has notifies the list of document to be carried by person responsible for transporting goods of value more than Rs.50,000. Following list can be useful:
    1. The Invoice or Bill of Supply;
    2. Delivery Challan containing details of consignment in case of transportation of goods without invoice.
    3. The consignment note or railway receipt or air consignment note or other similar documents.
    4. The e-way bill generated electronically from the website by the person on whose account taxable goods enter the state other than goods of personal effect, golds precious stones, pearls, goods moved under the seal of custom department etc.
  3. If any amount paid by an employer to employee which is not considered for the purpose of TDS under Income Tax Act, will be considered as supply of service under GST and will become subject to tax.
  4. If a construction company registered in India receives a contract to construct any complex or building outside India for which architectural service is received from a person outside India than no GST would be payable on remittance paid to the person from whom the architectural service is received, as place of supply outside India and location of immovable property outside India.
  5. The Government of West Bengal has issue e-way bill procedure through Trade Circular No. 06/2017, dated: 30th June, 2017. It specifies the procedures for Dealers/Taxable person having valid GST Provisional ID/GSTIN and for Dealers/Taxable person/Unregistered persons not having valid GST Provisional ID/GSTIN.