GST News update 5th week of August 2017

  1. CBEC has notified the E-way bill rules vide Notification No. 27/2017-Central Tax, dated- 30th August, 2017 which will be applicable for movement of goods having value in excess of Rs. 50,000. However, items falling under chapter 71 of HS code (i.e. Gems and Jewellery), inter alia, has been excluded from the applicability of E-way bill. It may also be noted that the e-way bill will come into force from the date of publication in official gazette.
  2. CBEC has issued the Notification No. 25/2017- Central Tax dated-28th August, 2017 to extend the time limit for furnishing the return for the month of July, 2017 by a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient till 15th September, 2017.
  3. CBEC has issued the Notification No. 26/2017- Central Tax dated-28th August, 2017 to extend the time limit for furnishing the GSTR 6 by an Input Service Distributor for the month of July, 2017 till 8th September, 2017 and for the month of August, 2017 till 23rd September, 2017.
  4. The newly created GST intelligence arm, Directorate General of Goods and Service Tax Intelligence, has been named the regulator for dealing with money laundering cases in the gems and jewelry sector.
  5. Government clarifies various issues through FAQ such as:
    1. Monetary compensation paid to employees is not considered as supply, so it will not attract GST but the fringe benefits are a supply of goods or services and are liable to GST if not exempted.
    2. Penal interest is a consideration for tolerating an act and it is a supply of service and will be taxaxble.
    3. Recipient of online database access services from a company abroad over the net would have to pay the applicable IGST on reverse charge basis.
    4. Free Replacement provided by a business to customers without consideration under warranty is chargeable to GST.
  6. As per the clarification issued by government regarding the classification for lottery in respective CGST, IGST, UTGST and SGST notifications shall be ‘Any Chapter’ of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) and tax on lottery should be paid accordingly at prescribed rates, 12% or 28%, as the case may be.