GST Update. Weekly Update N a t i o n a l A c a d e m y o f C u s t o m s, I n d i r e c t T a x e s a n d N a r c o t i c s ( N A C I N )

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1 GST Update Weekly Update

2 Background This Presentation covers the GST changes / observations/ press releases/ Tweet FAQs/ Sectoral FAQs released by CBEC since the last update on It supplements the earlier GST Updates. This presentation is based on CGST Act/Rules/ Notifications. Similar parallel provisions in State Laws may be referred to as required N a t i o n a l A c a d e m y o f C u s t o m s, I n d i r e c t T a x e s a n d N2 a r c o t i c s ( N A C I N )

3 LUT/ Bond for exporters Notification No. 37-Central Tax dated 4 th October, 2017 All registered persons who intend to supply goods or services for export without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the CGST Act, 2017 or the IGST Act, 2017 or any of the existing laws in force in a case where the amount of tax evaded exceeds Rs. 2.5 crore The provisions to apply mutatis mutandis in respect of zerorated supply of goods or services or both made by a registered person (including a SEZ developer/ Unit) to a SEZ developer or without payment of integrated tax. 3

4 Master Circular on LUT/ Bond Master Circular No. 08/2017-GST dated 4 th October, 2017 Circular No. 2/2/2017 GST dated 5th July, 2017, Circular No. 4/4/2017 GST dated 7th July, 2017 and Circular No. 5/5/2017 GST dated 11th August, 2017 rescinded Facility to export under LUT extended to all registered persons 4

5 Master Circular- Validity of LUT Validity of LUT Valid for the whole financial year in which it is tendered Facility of LUT deemed to be withdrawn : In case of Goods, if goods are not exported within three months from the date of issue of export invoice and the requisite tax plus interest is not paid within 15 days thereafter. In case of services, 15 days after expiry of one year; As payment is to be received within one year from the issue of invoice; requisite tax plus interest to be paid within 15 days thereafter 5

6 Format of LUT/Bond FORM GST RFD-11 to be manually submitted till module developed on the GST Portal LUT on Letter head of the registered person in duplicate LUT/Bond To be be executed by the working partner, the Managing Director or the Company Secretary or the proprietor or by a person duly authorised by such working partner or Board of Directors of such company or proprietor. The bond, wherever required, shall be furnished on non-judicial stamp paper of the value as applicable in the State in which the bond is being furnished 6

7 LUT/Bond (Contd.) Documents for LUT Self Declaration that no prosecution pending Verification, if any, may be done on post-facto basis. Time for acceptance of Bond/LUT To be accepted within a period of three working days of its receipt Deemed to be accepted, if not accepted within three working days as above. 7

8 Bond with BG Bond Persons who have been prosecuted for cases involving an amount exceeding Rs. 2.5 crore A bond, in all cases, shall be accompanied by a bank guarantee of 15% of the bond amount. No discretion to reduce the amount of BG Running Bond permitted The onus of maintaining the debit / credit entries of integrated tax in the running bond will lie with the exporter. The record of such entries shall be furnished to the Central tax officer as and when required. 8

9 LUT/Bond : Jurisdictional officer LUT/Bond shall be accepted by the jurisdictional Deputy/Assistant Commissioner having jurisdiction over the principal place of business of the exporter. The exporter is at liberty to furnish the LUT/bond before either the Central Tax Authority or the State Tax Authority till the administrative mechanism for assigning of taxpayers to the respective authority is implemented. 9

10 Export Package by GST Council Holders of AA / EPCG and EOUs would not have to pay IGST, Cess etc. on imports. Domestic supplies to holders of AA / EPCG and EOUs would be treated as deemed exports under Section 147 of CGST/SGST Act and refund of tax paid on such supplies given to the supplier. 10

11 Export Package Merchant exporters will now have to pay nominal GST of 0.1% for procuring goods from domestic suppliers for export. Concept of "e-wallet" which would be credited with a notional amount as if it is an advance refund. This credit would be used to pay IGST, GST etc. To be operational from 1 st April, 2018 GST on Duty Free scrips like MEIS/SEIS reduced from 5% to NIL Refunds to begin w.e.f 10 th October,

12 Relief for Small Units Composition Scheme: Turnover threshold limit enhanced from Rs.75 lacs to Rs.One crore Compulsory registration requirement for suppliers making interstate supplies, even below exemption limit waived. Small taxpayers having aggregate turnover of up to Rs.1.5 crore to file returns and pay taxes on quarterly basis; However registered buyers from these taxpayers will get ITC on monthly basis. 12

13 Relief for small Units Reverse Charge Mechanism under Section 9(4) of the CGST Act, 2017 suspended till 31 st March, 2017 GST on Advance Payment: No GST on advances received by Suppliers of goods having aggregate turnover of up to Rs.1.5 crore; GST to be paid at the time of supply Supplies from GTA to unregistered persons to be exempted TDS/TCS Provisions to be postponed till 31 st March, 2017 E-way bill system shall be introduced in a staggered manner with effect from and shall be rolled out nationwide with effect from

14 GST Rates Streamlined cil-% pdf GST Rate on 27 goods and 11 services streamlined IGST Exemptions on import of goods Rigs Imports of medicines supplied free by international agencies like UNICEF, WHO, Red Cross, etc. Bona fide gifts up to CIF value limit of Rs imported through post or air 14

15 Self Sealing of Containers List of vendors seeking to provide E-seals put up on CBEC website Vendors to provide the RFID readers at the ports/icds Till the mandatory self sealing is started, stuffing in present of Central Excise officers to continue 15

16 Area Based Exemptions in GST Scheme of budgetary support under Goods and Service Tax Regime to the units located in States of Jammu & Kashmir, Uttarakhand, Himachal Pradesh and North East including Sikkim. DIPP, Ministry of Commerce Notification dated 5 th October, All area based notifications have ceased to apply w.e.f and stands rescinded on vide notification No. 21/2017 dated New scheme announced w.e.f 1 st July,

17 Area Based Exemptions in GST (Contd.) The scheme shall be valid for each beneficiary for the residual period and the overall scheme shall be valid up to 30 th June, The GST Council had left it to the discretion of Central and State Governments to notify schemes of budgetary support to such units. Scheme of Budgetary Support 58% of the Central Tax/ 29% of the Integrated tax, paid through cash ledger to be refunded (since 42% gets devolved to the states) 17

18 Any ISSUES/ queries? CBEC MITRA HELPDESK GSTN Help Desk Help Desk Number:

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20 THANK YOU 20