GST News update 3rd week of August 2017

  1. For the Indian Railways, no goods and services tax (GST) will be applicable on inter- or intra-state transfer of equipment/materials (without transfer of title) for self-consumption.
  2. Vice President of GST Network Shri Shashi Bhushan Singh, conducted a webinar to clarify certain issues related to filing of GSTR-3B GST as under:
    1. Transitional Input Tax Credit of Excise, Service Tax, VAT etc. cannot be claimed in GSTR-3B directly, it has to be claim through Transition Forms.
    2. Any revision in GSTR-3B must be routed through Forms GSTR-1, GSTR-2 and GSTR-3.
    3. Refund cannot be claimed under Form GSTR-3B, it has to be routed through Form GSTR-3 or GSTR-4 or GSTR 7 with the Form GST RFD- 01.
    4. Where there are no inward or outward supplies during July & August, ‘Nil’ return must be filed.
    5. Composition scheme dealers shall file Form GSTR-4 in the month of October, while e-commerce operators supplying own goods & services will be required to file Form GSTR-3B, but in other cases, they will deduct TCS and file Form GSTR-8 which is yet to be notified.
  3. Packaged food products sold under names that are yet to receive trademark confirmation could attract a goods and services tax (GST) rate of 5 per cent.
  4. GST Law Committee decides to extend deadline for filing tax return for month of July, 2017 by 1 week; Tax payers will have to pay tax due post adjustment of input tax credit (ITC) by Aug 20; Such extension valid only for those who have to claim (ITC); Further, GSTN to put in place ITC claim forms, TRAN 1 & TRAN 2 by 21st August, 2017 as per CNBC TV 18 tweets.
  5. Exhibition Organisers or Exhibitors who have a permanent registration in any State do not need to have temporary registrations in the city where exhibitions are held, they can apply IGST at the rate of 18%.
  6. Venues can charge IGST at the rate of 18% on Exhibition/Event Management charges to Organisers  (annexe breakup viz. venue charges, electricity, security, housekeeping, branding, etc.).
  7. Not for sale Exhibition material and exhibits can be moved from one state to another on a Delivery Challan.
  8. CBEC for the purpose of having uniformity in the interpretation of Notification No. 16/2017 – GST dated 7th July, 2017, Circular No. 2/2/2017 – GST dated 5th July, 2017 and Circular No. 4/4/2017 – GST dated 7th July, 2017  issues Circular No. 5/5/2017-GST dated 11th August, 2017 for the clarification on issues related to furnishing of Bond/Letter of Undertaking for Exports. The key highlights of the said circular are:
    1. It is clarified that acceptance of LUT instead of a bond for supplies of goods to Nepal or Bhutan or SEZ developer or SEZ unit will be permissible irrespective of whether the payments are made in Indian currency or convertible foreign exchange, the said clarification also applies on the supply of services to SEZ developer or SEZ unit.
    2. However, supply of services to Nepal or Bhutan will be deemed to be export of services only if the payment for such services is received by the supplier in convertible foreign exchange.
    3. The Commissioner may waive off the requirement to furnish bank guarantee taking into account the facts and circumstances of each case. Some of the instances are:
      a) An exporter registered with recognized Export Promotion Council can be allowed on the submission of a self-attested copy of the proof of its registration for the same.
      b) If a registered person is registered in more than one state on the basis of same PAN and the criteria of LUT is not being satisfied due to splitting of accounts of respective GSTINs in different states, but the aggregate remittance under such PAN (i.e. from all such GSTINs under same PAN) satisfies the criteria of LUT, then the exporter can submit the bond without the bank guarantee for all the GSTINs even if the criteria of LUT have not been satisfied under each such GSTINs.
    4. The exporter is at liberty to furnish the bond/LUT before Central Tax Authority or State Tax Authority till the administrative mechanism for assigning of taxpayers to respective authority is implemented.