GST News update 2nd week of August 2017

  1. CBEC has issued Circular No. 33/2017 through F.No.450/131/2017-Cus IV regarding leviability of IGST on High Sea Sales of imported goods. The key highlight of circular is:
    • The IGST on high sea sale (s) transactions of imported goods, whether one or multiple, shall be levied and collected only at the time of importation i.e. when the import declarations are filed before the Customs authorities for the customs clearance purposes for the first time.
    • Further, value addition accruing in each such high sea sale shall form part of the value on which IGST is collected at the time of clearance.
    • The importer i.e the last buyer in the chain would be required to furnish the entire chain of documents, such as original invoice, high seas sales contract, details of service charge/commission paid, etc. to link between the first contracted price of the goods and the last transaction.
  2. Migrated taxpayers who have not submitted enrolment form will not be able to file return 3B on 20th August, 2017.
  3. CBEC issued circular to dispensed with the requirement of the certificate from GST officer to claim higher rate of drawback, so that the higher rate of drawback can be claimed on the basis of Self declaration to be provided by the exporters.( Circular No. 32/2017- Custom through F .No. 609/64/2017- DBK).
  4. Assessees with a turnover of up to Rs. 1.5 crore or less would be with the States for purpose of assessment for scrutiny and audit, while the remaining would be with the Centre.
  5. Key highlights of the 20th GST Council Meeting held on 5th August, 2017 are:
    • E-way bill is required for the goods of value more than the Rs. 50,000/-. E-way bill is required to be prepared online before the goods are moved.
    • E-way bill is not to be issued for exempted goods and for the goods travelling within 10 Km.
    • The job work rate for all kinds of work in the textile chain has been kept at 5 per cent.
    • Work contracts services provided to the government would be taxed at the rate of 12% under GST and also the input tax credit would be available on it.
  6. Rent a cab service and GTA service provider can avail the option to pay GST at the rate of 12% with full input tax credit or to pay GST at the rate of 5% with no input tax credit.
  7. Ministry of Finance has clarified that star rating of hotels is not relevant for determining the applicable rate of GST.
  8. CBEC asked the exporters to register their bank accounts with customs for IGST refunds before filing shipping bills.
  9. The first tax return under GST regime using Form GSTR 3B can be filed from Saturday 5th Aug (for July month), filing option will remain open till 20th
  10. All sub brokers need to register who make taxable supply of goods or services or both on behalf of other taxable persons whether as an agent or otherwise. Place of such sub brokers need not be considered as an additional place of business.
  11. In case of sub broker if he is billing to the client from its own place of business than the location of supplier will be the place of sub broker, in other cases location of head office from where the billing is done will be the location of supplier and the place of supply will be the location of the client.
  12. GST will be charged on the delayed payment of interest which pertains to service only.
    For E.g. Suppose we bought a stock worth of Rs. 10 lakh and pay Rs. 1000 for STT and 1500 for brokerage plus exchange fee than GST will be charged on interest of delayed payment paid on Rs. 1500.
  13. Registration for the International Finance Services Centre (IFSC) unit is compulsory even if GST is not charged on the foreign services provided.
  14. GST return due date for the month of July, 2017 and August, 2017 is as follow:

Sr. No.

Month

Return

Time Period

1

July – 2017

GSTR – 1

1st to 5th September

GSTR – 2

6th to 10th September

GSTR – 3

11th to 15th September

GSTR – 3B

20th August

2

August – 2017

GSTR – 1

16th to 20th September

GSTR – 2

21st to 25th September

GSTR – 3

26th to 30th September

GSTR – 3B

20th September