Search This Blog

Tuesday, February 19, 2019

FinTax - Summary of GST recent amendments & clarifications

FinTax - Summary of GST recent amendments, circulars & clarifications

Central Tax Notifications

Sr. No.
Notification No. and date
Particulars
1
67/2018-Central Tax dated 31st December 2018
The Government vide this notification has extended the window for completing the migration process for the persons who had obtained the provisional IDs but could not complete the migration process. The earlier deadline of 31st August 2018 has now been extended to 31st January 2019
2
68/2018-Central Tax dated 31st December 2018
Vide Notification No. 67/2018-Central Tax dated 31st December 2018, the Government has extended the migration window for persons who had obtained provisional IDs but not completed the migration process. Such persons can now finish the migration by 31st January 2019. In line of the same, the deadline for filing GSTR-3B for such persons for the period July 2017 to February 2019 has been extended to 31st March 2019
3
69/2018-Central Tax dated 31st December 2018
4
70/2018-Central Tax dated 31st December 2018
5
71/2018-Central Tax dated 31st December 2018
Vide Notification No. 67/2018-Central Tax dated 31st December 2018, the Government has extended the migration window for persons who had obtained provisional IDs but not completed the migration process. Such persons can now finish the migration by 31st January 2019. In line of the same, the deadline for filing GSTR-1 for such persons for the period July 2017 to February 2019 has been extended to 31st March 2019
6
72/2018-Central Tax dated 31st December 2018
7
73/2018-Central Tax dated 31st December 2018
Section 51 of the CGST Act mandates certain Government Departments to deduct tax from the payments being made by them towards supplies received by them. Vide this Notification, the supplies between the specified Government Departments have been exempted from the applicability of TDS. Thus, a supply made by a Government department (required to be registered under Section 51 of CGST Act) to another department (required to be registered under Section 51 of CGST Act) shall not be liable for deduction of tax at source
8
74/2018-Central Tax dated 31st December 2018
Please refer the attached document for highlights of key amendments made in the CGST Rules, 2017
9
75/2018-Central Tax dated 31st December 2018
This notification seeks to waive off the amount of late fees payable on delayed filing of GSTR-1 for the period July 2017 to September 2018 where the taxpayer has not furnished the GSTR-1 by the due date however furnishes the same between the period from 22nd December, 2018
to 31st March, 2019
10
76/2018-Central Tax dated 31st December 2018
This notification seeks to waive off the amount of late fees payable on delayed filing of GSTR-3B for the period July 2017 to September 2018 where the taxpayer has not furnished the GSTR-3B by the due date however furnishes the same between the period from 22nd December, 2018
to 31st March, 2019
11
77/2018-Central Tax dated 31st December 2018
The late fees for filing GSTR-4 (Return to be filed by Composition Taxpayers) have been waived off vide this notification
12
78/2018-Central Tax dated 31st December 2018
Vide this Notification, the deadline for furnishing ITC-04 for the period July 2017 to December 2018 has been extended to 31st March 2019
13
79/2018-Central Tax dated 31st December 2018
Certain changes in the administrative function of the department
14
04/2018-Integrated Tax, dated 31st December 2018
This notification seeks to amend the IGST Rules to provide for the mechanism to determine the place of supply and the amount attributable to various places of supply in case the following services are provided across multiple states or multiple countries -

- Services directly in relation to immovable property
- Lodging accommodation by a hotel, inn, guest house, homestay, club or campsite, by
whatever name called, and including a houseboat or any other vessel
- Accommodation in any immovable property for organising any marriage or reception or
matters related thereto, official, social, cultural, religious or business function including
services provided in relation to such function at such property
- Services ancillary to the above
- services (including ancillary services) provided by way of organisation of a cultural, artistic, sporting, scientific, educational or entertainment event , including supply of services in relation to a conference, fair, exhibition, celebration or similar events
-  supply of services relating to a leased circuit

Central Tax (Rate) Notification

Sr. No.
Notification No. and date
Particulars
Relevant changes in rate of Goods
1
24/2018-Central Tax (Rate) dated 31st December 2018
This notification amends notification No. 1/2017 - GST Rate schedule on Goods.C8

a. Supply of all the footwears (of any type) having sale value not exceeding Rs.1000 per pair will be charged GST @ 5%

b. Rate of tax for supply of “Transmission shafts (including cam shafts and crank shafts) and cranks; bearing housings and plain shaft bearings; gears and gearing; ball or roller screws; gear boxes and other speed changers, including torque converters; flywheels and pulleys, including pulley blocks; clutches and shaft couplings (including universal joints)” have been reduced from 28% to 18%
Relevant changes in rate of Services
2
27/2018-Central Tax (Rate) dated 31st December 2018
This notification amends notification No. 11/2017 - GST Rate schedule on Services. Some of the key amendments are summarised below:

a. GST will be charged at the rate of 18% on supply of service by way of construction or engineering or installation or other technical services, provided in relation of setting up of following, -
(a) Bio-gas plant
(b) Solar power based devices
(c) Solar power generating system
(d) Wind mills, Wind Operated Electricity Generator (WOEG)
(e) Waste to energy plants / devices
(f) Ocean waves/tidal waves energy devices/plants

b. In case of service of third party insurance of “goods carriage”, GST would be chargeable at the rate of 12%

c. In case of leasing or renting of goods, GST will be chargeable at the rate as applicable on supply of like goods involving transfer of title in goods.

d. GST would be chargeable at a reduced rate of 12% for services by way of admission exhibition of cinematograph films where price of admission ticket is INR 100 or less. However, in case the price of ticket is above INR 100, GST will be charged at 18%
3
28/2018-Central Tax (Rate) dated 31st December 2018
This notification amends notification No. 12/2017 - Schedule on exemption of GST on Services.
4
29/2018-Central Tax (Rate) dated 31st December 2018
This notification amends notification No. 13/2017 - Schedule on GST payable on Reverse Charge Mechanism on services.  Some of the key amendments are summarised below: 

1. Services provided by business facilitator (BF) to a banking company

2. Services provided by an agent of business correspondent (BC) to business correspondent (BC).

3. Security services (services provided by way of supply of security personnel) provided to a registered person:
Provided that nothing contained in this entry shall apply to, -
(i)(a) a Department or Establishment of the Central Government or State Government or Union territory; or (b) local authority; or (c) Governmental agencies; which has taken registration under the Central Goods and Services Tax Act, 2017 (12 of 2017) only for the purpose of deducting tax under section 51 of the said Act and not for making a taxable supply of goods or services; or
(ii) a registered person paying tax under section 10 (i.e. composition scheme) of the GST Act
5
30/2018-Central Tax (Rate) dated 31st December 2018
The said notification amend No. 11/2017 - GST rate Schedule on services. The Notiifcation adds an explanantion, that in case of Multimodal transportation of goods, the said entry will be applicable only in case of transport of goods from a place in India to another place in India.

Circulars & Orders

Sr. No.
Circulars & Order No. and date
Particulars
1
Order No. 02/2018-Central Tax dated 31.12.2018
Extends the due date for following:
- Availing the input tax credit pertaining to the invoices or debit notes relating to such invoices issued during the FY 2017-18, till the due date for furnishing GST return for the month of March 2019;

- Rectification of error or omission in respect of GSTR-1 filed for FY 2017-18, till the due date for furnishing GSTR-1 for the month of March 2019.
2
Order No. 03/2018-Central Tax dated 31.12.2018
Further extends the due date for furnishing of annual returns in FORM GSTR-9, FORM GSTR-9A and reconciliation statement (GST Audit report) in FORM GSTR-9C for the FY 2017-2018 till 30.06.2019.
3
Order No. 04/2018-Central Tax dated 31.12.2018
Extends the due date for furnishing the FORM GSTR-8 (TCS Return) by e-commerce companies for the months of October to December, 2018 till 31.01.2019.
4
Circular No. 76/2018-GST dated 31.12.2018
Clarification on following issues:

1. Government department to get registered and pay GST on supply of used vehicles, old and used goods, waste and scrap made by them to an unregistered person subject to other provisions of GST Law.

2. Penalty under Section 73(11) of the CGST Act is not payable in case of delayed filing of GSTR-3B, as the tax alongwith applicable interest has already been paid though after the due date. However, a general penalty in terms of Section 125 of the CGST Act can be imposed since the tax has been paid late in contravention of CGST Act.

3. With respect to the supplementary invoice, debit note or the credit note issued after 1st July 2017, in case of revision of prices of any goods or services supplied in the erstwhile regime (i.e. on or before 30.06.2017),  the rate as per provisions of GST Law would be applicable.

4. The TDS related provisions (Section 51 of the CGST Act) are applicable only to such authority or a board or any other body set up by an Act of Parliament / State legislature or established by any Government in which Government has 51% or more participation either by way of equity or control.

5. The taxable value for the purposes of GST shall include the TCS amount collected under the provisions of the Income Tax Act since the value to be paid to the supplier by the buyer is inclusive of the said TCS.
5
Circular No. 78/2018-GST dated 31.12.2018
Clarification around the export treatment in case of outsourced services, as under:

    Where an exporter of services located in India is supplying certain services to a recipient located outside India, either wholly or partly through any other supplier of services located outside India, the following two supplies are taking place -
- Supply of services from the exporter of services located in India to the recipient of services located outside India for the full contract value;
- Import of services by the exporter of services located in India from the supplier of services located outside India with respect to the outsourced portion of the contract.

The value of services as agreed to in the contract between the exporter of services located in India and the recipient of services located outside India shall be considered as export of services if all the conditions laid down in section 2(6) of the IGST Act, 2017 read with section 13(2) of the IGST Act, 2017 are satisfied.

    The supplier of services located in India would be liable to pay IGST on reverse charge basis on the import of services on that portion of services which has been provided by the supplier located outside India to the recipient of services located outside India. The exporter of services located in India would be eligible for taking input tax credit of the IGST paid.
6
Circular No. 79/2018-GST dated 31.12.2018
Clarification on refund related issues
7
Circular No. 80/2018-GST dated 31.12.2018
Clarification around applicability of GST on supply of cranes, rigs, tools and spares and other machinery when moved from one state to another by a person on his account for use there for supply of services. It has been clarified that any such movement on own account (not involving distinct person in terms of Section 25), where such movement is not intended for further supply of such goods does not constitute a supply and would not be liable to GST.
8
Circular No. 85/2019-GST dated 01.01.2019
Clarification on GST rate applicable on supply of food and beverage services by educational institution

Supply of all services by an educational institution to its students, faculty and staff is exempt under Notification No. 12/2017-Central Tax (Rate). Such services include supply of food and beverages by an educational institution to its students, faculty and staff. In this line, it has been clarified that supply of food and beverages by an educational institution to its students, faculty and staff, where such supply is made by the educational institution itself, is exempt under Notification No. 12/2017-Central Tax (Rate).

However, such supply of food and beverages by any person other than educational institutions based on a contractual arrangement with such institution is leviable to GST @ 5%.




--
FinTax
Tax and Finance Consultant

+91 8828960174
+ 91 9892084003
FinTax.ca@consultant.com
FinTax.ca@gmail.com

No comments: