Issue: August 2018 Vol. 8 No. 1 MCA Update SEBI Update RBI Update Income Tax Update

Transcription

1 Issue: August 2018 Vol. 8 No. 1 B Mathur & Co. Company Secretaries MCA Update SEBI Update RBI Update Income Tax Update IPR Update Service Tax Excise Update Custom Update GST Update DGFT Update 1

2 WEEKLY UPDATES JULY 30 th, AUGUST 05 th,

3 INDEX MCA UPDATE Companies (Accounts) Amendment Rules, SEBI UPDATE Role of Sub-Broker (SB) vis-a-vis Authorized Person (AP) 6-7 RBI UPDATE Marginal Standing Facility 8 Liquidity Adjustment Facility Repo and Reverse Repo Rates 9 Change in Bank Rate 10 Standing Liquidity Facility for Primary Dealers 11 Maintenance of CRR/SLR on Foreign Currency Assets/Liabilities Reference rate for INR/USD 12 and exchange rate of other major currencies CUSTOM UPDATE Seeks to impose safeguard duty on imports of Solar Cells, whether or not assembled in modules 13 or panels falling under heading 8541 of the Customs Tariff Act, 1975, for a period of two years Amendment to notification no. 38/2018-Cus (NT) dated Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seeds, Areca Nut, Gold and Silver- Reg Electronic sealing-deposit in and removal of goods from Customs Bonded warehouse- 17 Amendment to Circular-19/2018-Customs dated 18th June, 2018 Exchange Rates Notification No.67/2018-Custom(NT) dated Seeks to further amend notification No. 50/2017-customs dated 30th June 2017, to give effect to 20 serial number 14A and the second proviso to the notification from the 18th day of September, 2018 to delay the implementation of retaliatory duties against US till 18th September, Courier Imports and Exports (Clearance) Amendment Regulations, Amendment in Courier Imports and Exports (Electronic Declaration and Processing) 22 Amendment Regulations, 2018 GST UPDATE Notification issued to extend the due date for filing of FORM GSTR-6 23 Seeks to withdraw Circular No. 28/02/2018-GST dated as amended vide 24 Corrigendum dated and Order No 02/2018 CT dated Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM) 3

4 MCA UPDATES TO BE PUBLISHED IN THE GAZZETE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB-SECTION (i)] MINISTRY OF CORPORATE AFFAIRS NOTIFICATION New Delhi, the 31 July, 2018 G.S.R (E).-In exercise of the powers conferred by section 134 read with section 469 of Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Accounts) Rules, 2014, namely :- 1. (1) These rules may be called the Companies (Accounts) Amendment Rules, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Company (Accounts) Rules, 2014, in Rule 8, (i) In sub-rule (5), after clause (viii) the following clauses shall be inserted, namely:- (ix) a disclosure, as to whether maintenance of cost records as specified by the Central Government under sub-section (1) of section 148 of the Companies Act,2013, is required by the Company and accordingly such accounts and records are made and maintained, (x) a statement that the company has complied with provisions relating to the constitution of Internal Complaints Committee under the Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act,2013 [14 of 2013], ; (ii) after sub-rule (5), the following rule shall be inserted, namely :- (6) This rule shall not apply to One Person Company or Small Company, (iii) after rule 8, the following rule shall be inserted namely :- 8A. Matters to be included in Board s Report for One Person Company and Small Company.- (1) The Board s Report of One Person Company and Small Company shall be prepared based on the stand alone financial statement of the company, which shall be in abridged form and contain the following :- (a) The web address, if any, where annual return referred to in sub-section (3) of section 92 has been placed ; (b) Number of meetings of the board; (c) Director s Responsibility Statement as referred to in sub-section (5) of section 134; (d) Details in respect of frauds reported by auditors under sub-section (12) of section 143 other than those which are reportable to the Central Government; (e) Explanations or comments by the Board on every qualification, reservation or adverse remark or disclaimer made by the auditor in his report; (f) The state of the company s affairs; (g) The financial summary or highlights; (h) Material changes from the date of closure of the financial year in the nature of business and their effect on the financial position of the company; (i) The details of directors who were appointed or have resigned during the year; (j) The details or significant and material orders passed by the regulators or courts or tribunals impacting the going concern status and company s operations in future. 4

5 (2) The Report of the Board shall contain the particulars of contracts or arrangements with related parties referred to in sub-section (1) of section 188 in the Form AOC-2 [F.No. 1/19/2013-CL-V-Part] K. V. R Murty, Joint Secretary Note: The principal notification was published in the Gazette of India vide G.S.R. 239(E), dated the 31 st March, 2014 and subsequently amended vide notification number G.S.R 723(E) dated the 14 th October, 2014, G.S.R 37(E) dated the 16 th January, 2015, G.S.R 680(E) dated the 04 th September, 2015, G.S.R 742(E) dated the 27 th July, 2016 and G.S.R 1371(E) dated the 07 th November,

6 SEBI UPDATES CIRCULAR SEBI/HO/MIRSD/DoP/CIR/P/2018/117 August 03, 2018 To, 1. All Recognized Stock Exchanges 2. Stock Brokers through Recognized Stock Exchanges 3. Sub-Brokers through Recognized Stock Exchanges Dear Sir/Madam, Sub: Role of Sub-Broker (SB) vis-a-vis Authorized Person (AP) 1. Under the current regulatory framework, Sub-Brokers ( SB ) need to seek registration from SEBI under SEBI (Stock Broker and Sub-Broker) Regulations, 1992, and Authorized Persons ( AP ) need to seek registration from the concerned Exchange. There is no difference in the operative role of a Sub-Broker and that of an Authorized Person. 2. SEBI Board in its meeting held on June 21, 2018 decided to discontinue with Sub-Broker as an intermediary to be registered with SEBI. 3. In view of the same, the need for the category of Sub-Broker as a market intermediary may no longer be required. Therefore, it is decided that- a) No fresh registration shall be granted to any person as Sub-Broker. Any pending applications for registration as Sub-Brokers under process, shall be returned to the concerned Stock Exchanges for onward transmission to the applicant. b) The registered Sub-Brokers shall have time till March 31, 2019 in order to migrate to act as an AP and / or Trading Member (TM). The Sub-Brokers, who do not choose to migrate into AP and /or TM, shall deemed to have surrendered their registration with SEBI as Sub-Broker, w.e.f. March 31, c) Consequent upon migration / deemed surrender, the certificate of registration granted to the Sub-Brokers by SEBI shall stand withdrawn. d) The migration path for existing registered Sub-Brokers, shall be as under: i. In case of a registered Sub-Broker who is already approved to act as AP in Derivatives Segment of the Exchanges, he shall be registered with the Exchange to continue activities of Sub-Broker as an AP in Cash Segment. ii. In case of a registered Sub-Broker who is not approved by Stock Exchanges to act as AP in Derivatives Segment, Exchanges shall register them as AP in Cash Segment, to continue their operations without disruption. iii. The existing Sub-Broker has an option to become a Trading Member, if the Sub-Broker meets the eligibility criteria prescribed under Stock Exchange Bye-laws and SEBI Regulations and by complying with these Regulations. e) All the existing Sub-Brokers shall be required to pay renewal fees to SEBI up to financial year ; and renewal fees paid by Sub-Broker for the financial years beyond shall be refunded on receipt of recommendation from respective Stock Exchange. 6

7 f) The Stock Exchanges shall put in place appropriate process for surrender or migration of Sub- Broker to AP / TM. 4. The Stock Exchanges are directed to: a) bring the provisions of this circular to the notice of the Stock Brokers and Sub-Brokers, and also disseminate the same on their websites; b) make amendments to the relevant bye-laws, rules and regulations for the implementation of the above decision in co-ordination with one another, as considered necessary; c) monitor the compliance of this circular; d) communicate to SEBI, the status of the implementation of the provisions of this circular. 5. This circular is issued in exercise of powers conferred under Section 11(1) of the Securities and Exchange Board of India Act, 1992 to protect the interest of investors in securities and to promote the development of and to regulate the securities market. Yours faithfully, D Rajesh Kumar General Manager 7

8 RBI/ /30 FMOD.MAOG.No.127/ / RBI UPDATES All Scheduled Commercial Banks (excluding RRBs) August 1, 2018 Madam/Sir, Marginal Standing Facility As announced in the Third Bi-monthly Monetary Policy Statement, today, it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to 6.50 per cent with immediate effect. 2. Consequent to the change in the Repo rate, the Marginal Standing Facility (MSF) rate stands adjusted to 6.75 per cent with immediate effect. 3. All other terms and conditions of the extant MSF scheme will remain unchanged. Yours sincerely (Radha Shyam Ratho) Chief General Manager 8

9 RBI/ /31 FMOD.MAOG. No.126 / / All Scheduled Commercial Banks (excluding RRBs), Scheduled Urban Co-operative Banks and Standalone Primary Dealers August 1, 2018 Madam/Sir, Liquidity Adjustment Facility Repo and Reverse Repo Rates As announced in the Third Bi-monthly Monetary Policy Statement, today, it has been decided by the Monetary Policy Committee (MPC) to increase the policy Repo rate under the Liquidity Adjustment Facility (LAF) by 25 basis points from 6.25 per cent to 6.50 per cent with immediate effect. 2. Consequent to the change in the Repo rate, the Reverse Repo rate under the LAF stands adjusted to 6.25 per cent with immediate effect. 3. All other terms and conditions of the extant LAF Scheme will remain unchanged. Yours sincerely (Radha Shyam Ratho) Chief General Manager 9

10 RBI/ /32 DBR.No.Ret.BC.03/ / August 1, 2018 The Chairperson / CEOs of all Scheduled and Non Scheduled Banks Dear Sir / Madam, Change in Bank Rate Please refer to our circular DBR.No.Ret.BC.107/ / dated June 6, 2018 on the captioned subject. 2. As announced in the Third Bi-Monthly Monetary Policy Statement dated August 1, 2018, the Bank Rate stands adjusted by 25 basis points from 6.50 per cent to 6.75 per cent with immediate effect. 3. All penal interest rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate, also stand revised as indicated in the Annex. Yours faithfully (Dr. S.K.Kar) Chief General Manager Penal Interest Rates which are linked to the Bank Rate Annex Item Existing Rate Revised Rate (With immediate effect) Penal interest rates on Bank Rate plus 3.0 percentage Bank Rate plus 3.0 percentage points shortfalls in reserve points (9.50 per cent) or Bank (9.75 per cent) or Bank Rate plus 5.0 requirements (depending on Rate plus 5.0 percentage percentage points (11.75 per cent). duration of shortfalls). points (11.50 per cent). 10

11 RBI/ /33 REF. No. MPD.BC. 384/ / All Primary Dealers, August 01, 2018 Standing Liquidity Facility for Primary Dealers In the Third Bi-monthly Monetary Policy Statement of the Monetary Policy Committee (MPC), the repo rate under the Liquidity Adjustment Facility (LAF) has been increased by 25 basis points to 6.50 per cent from 6.25 per cent with immediate effect. 2. Accordingly, the Standing Liquidity Facility provided to Primary Dealers (PDs) (collateralised liquidity support) from the Reserve Bank would be available at the revised repo rate of 6.50 per cent with effect from August 1, Yours faithfully, (Janak Raj) Principal Adviser 11

12 RBI/ /34 DBR.Ret.BC.No.01/ / The Chairperson / CEOs of all Scheduled and Non- Scheduled Banks August 02, 2018 Dear Sir/Madam, Maintenance of CRR/SLR on Foreign Currency Assets/Liabilities Reference rate for INR/USD and exchange rate of other major currencies. Please refer to our circular DBOD.No.Ret.BC.113/ / dated June 29, 2012 on Maintenance of CRR on FCNR(B) Scheme advising banks to be guided by the reference rate announced on the Reserve Bank s website for converting foreign assets/deposits into INR for reporting in Form A Return. 2. Financial Benchmarks India Private Limited (FBIL) has taken over the process of computing and disseminating reference rate for INR/USD and exchange rate for the other major currencies with effect from July 10, In this connection, we advise that banks shall use the conversion rate announced by FBIL for the purpose of converting foreign assets/liabilities for reporting in Form A return and Form VIII return. The change is to brought into effect from the reporting fortnight ending July 20, As regards conversion of assets/liabilities in other currencies, for which reference rate is not available from FBIL, banks may continue to use New York closing rate pertaining to the day end of the Reporting Friday, for converting such currencies into USD. Banks may use the reference rate of FBIL for USD/INR of the same day for conversion into INR. Yours faithfully, (Shrimohan Yadav) Chief General Manager 12

13 CUSTOM UPDATES [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] Government of India Ministry of Finance (Department of Revenue) Notification No. 01/2018-Customs (SG) New Delhi, the 30 th July, 2018 G.S.R. (E). - Whereas, in the matter of import of "Solar Cells whether or not assembled in modules or panels (hereinafter referred to as the subject goods), falling under heading 8541 or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) (hereinafter referred to as the Customs Tariff Act), the Directorate General of Trade Remedies vide final findings F.No.22/1/2018-DGTR, dated the 16 th July, 2018, published in the Gazette of India, Extraordinary, Part I, Section 1, on 16 th July, 2018, has recommended the imposition of safeguard duty on subject goods falling under heading 8541 or tariff item of the First Schedule to the Customs Tariff Act for a period of two years at the rate specified here in below. Now, Therefore, in exercise of the powers conferred by sub-section (1) of section 8B of the Customs Tariff Act, read with rules 12, 14 and 17 of the Customs Tariff (Identification and Assessment of Safeguard Duty) Rules, 1997, after considering the said findings of the Directorate General of Trade Remedies and subject to the provisions of paragraph 2, hereby imposes on subject goods falling under heading 8541 or tariff item of the First Schedule to the Customs Tariff Act, when imported into India, a safeguard duty at the following rate, namely:- (a) twenty five per cent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30 th July, 2018 to 29 th July, 2019 (both days inclusive); (b) twenty per cent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30 th July, 2019 to 29 th January, 2020 (both days inclusive); and (c) fifteen per cent. ad valorem minus anti-dumping duty payable, if any, when imported during the period from 30 th January, 2020 to 29 th July, 2020 (both days inclusive). 2. Nothing contained in this notification shall apply to imports of subject goods from countries notified as developing countries vide notification No. 19/2016-Customs (N.T.) dated 5 th February, 2016, except China PR, and Malaysia. [F.No.354/31/2018-TRU] (Mohit Tewari) Under Secretary to the Government of India 13

14 TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF REVENUE (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) Notification No.65/2018-Customs (N.T.) New Delhi, the 30 th July, 2018 G.S.R (E) in exercise of the powers conferred by section 157, read with section 30, 30A, 41, 41A, 53, 54, 56, sub-section (3) of section 98 and sub-section (2) of section 158 of the Custom Act, 1962, the Central Board of Indirect Taxes and Customs hereby makes the following regulations to amend the Sea Cargo manifest and Transhipment regulations, 2018, namely:- 1. Short title and commencement. (1) These regulation may be called the Sea Cargo Manifest and Transhipment (Amendment) Regulation, (2) They shall come in to force on the date of their publication in official Gazette. 2. In the sea Cargo manifest and transhipment regulation, 2018, in regulation I, in sub-regulation (2), for the figures, letters and word 1 st August, 2018, the words, figures and letters the 1 st November, 2018 shall be substituted. [F. No. 450/58/2015-Cus-IV] (B. Konthoujam) Under secretary to the Government of India Note: The Principal regulations were published in the Gazette of India, Extraordinary, Part II, Section 3 Subsection (i) vide number G.S.R. 448(E), dated the 11 th My,

15 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART-II, SECTION-3, SUB- SECTION (ii)] Government of India Ministry of Finance (Department of Revenue) (Central Board of Indirect Taxes and Customs) Notification No. 66/2018-CUSTOMS (N.T.) New Delhi, 31 st July, Shravana, 1940 (SAKA) S.O. (E). In exercise of the powers conferred by sub-section (2) of section 14 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes & Customs, being satisfied that it is necessary and expedient so to do, hereby makes the following amendments in the notification of the Government of India in the Ministry of Finance (Department of Revenue), No. 36/2001-Customs (N.T.), dated the 3 rd August, 2001, published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 748 (E), dated the 3 rd August, 2001, namely:- In the said notification, for TABLE-1, TABLE-2, and TABLE-3 the following Tables shall be substituted, namely: - TABLE-1 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $Per Metric Tonne) (1) (2) (3) (4) Crude Palm Oil RBD Palm Oil Others Palm Oil Crude Palmolein RBD Palmolein Others Palmolein Crude Soya bean Oil Brass Scrap (all grades) Poppy seeds 2349 TABLE-2 Sl. No. Chapter/ heading/ sub-heading/tariff item Description of goods Tariff value (US $) (1) (2) (3) (4) 1 71 or 98 Gold, in any form, in respect of which the 394 per 10 grams benefit of entries at serial number 356 and 358 of the Notification No. 50/2017-Customs dated is availed 2 71 or 98 Silver, in any form, in respect of which the benefit of entries at serial number 357 and 359 of the Notification No. 50/2017-Customs dated is availed 499 per kilogram 15

16 Sl. No. Chapter/ heading/ sub-heading/tariff item TABLE-3 Description of goods Tariff value (US $ Per Metric Tonne) (1) (2) (3) (4) Areca nuts 3947 (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India Note: - The principal notification was published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide Notification No. 36/2001 Customs (N.T.), dated the 3 rd August, 2001, vide number S. O. 748 (E), dated the 3 rd August, 2001 and was last amended vide Notification No. 62/2018-Customs (N.T.), dated the 13 th July, 2018, e-published in the Gazette of India, Extraordinary, Part-II, Section-3, Sub-section (ii), vide number S. O. 3442(E), dated 13 th July,

17 Circular No. 24/2018- Customs F. No. 484/3/2015-LC (Vol II) Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes & Customs Room No. 226, North Block, New Delhi Dated 31 st July, 2018 To, Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioners of Customs Subject: Electronic sealing Deposit in and removal of goods from Customs bonded Warehouses References have been received regarding, Circular 19/2018- Customs dated 18 th June, 2018, seeking a postponement in the date for mandatory RFID sealing in case of movement of goods under warehousing bond. The Board has decided to extend the date to 1 st October, 2018 in order enable establishment of infrastructure and procurement of seals by warehouse owners. (Dr. Swati Bhanwala) OSD (LC) 17

18 GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) (CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS) ***** Notification No.67/ Customs (N.T.) New Delhi, dated the 2 nd August, Shravana 1940 (SAKA) In exercise of the powers conferred by section 14 of the Customs Act, 1962 (52 of 1962), and in supersession of the notification of the Central Board of Indirect Taxes and Customs No.63/2018-CUSTOMS (N.T.), dated 19 th July, 2018 except as respects things done or omitted to be done before such supersession, the Central Board of Indirect Taxes and Customs hereby determines that the rate of exchange of conversion of each of the foreign currencies specified in column (2) of each of Schedule I and Schedule II annexed hereto, into Indian currency or vice versa, shall, with effect from 3 rd August, 2018, be the rate mentioned against it in the corresponding entry in column (3) thereof, for the purpose of the said section, relating to imported and export goods. SCHEDULE-I Sl.No. Foreign Currency Rate of exchange of one unit of foreign currency equivalent to Indian rupees (1) (2) (3) (a) (b) (For Imported Goods) (For Export Goods) 1. Australian Dollar Bahrain Dinar Canadian Dollar Chinese Yuan Danish Kroner EURO Hong Kong Dollar Kuwait Dinar New Zealand Dollar Norwegian Kroner Pound Sterling Qatari Riyal Saudi Arabian Riyal Singapore Dollar South African Rand Swedish Kroner Swiss Franc UAE Dirham US Dollar SCHEDULE-II Sl.No. Foreign Currency Rate of exchange of 100 units of foreign currency equivalent to Indian rupees (1) (2) (3) (a) (b) (For Imported Goods) (For Export Goods) 1. Japanese Yen

19 [F.No. 468/01/2018-Cus.V] (Dr. Sreeparvathy S.L.) Under Secretary to the Govt. of India TELE:

20 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] GOVERNMENT OF INDIA MINISTRY OF FINANCE (Department of Revenue) Notification No. 56/2018-Customs New Delhi, the 3 rd August, 2018 G.S.R. (E).- In exercise of the powers conferred by sub-section (1) of section 25 of the Customs Act, 1962 (52 of 1962) and sub-section (12) of section 3 of the Customs Tariff Act, 1975 (51 of 1975), the Central Government, being satisfied that it is necessary in the public interest so to do, hereby makes the following further amendments in the notification of the Government of India, Ministry of Finance (Department of Revenue), No. 50/2017-Customs, dated the 30 th June, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30 th June, 2017, namely:- In the said notification, with effect from the 4 th day of August, 2018 the following proviso shall be inserted after the second proviso, namely:- Provided also that the,- (a) entries against serial number 14A, and (b) the second proviso, shall come into effect from the 18 th day of September, [F.No. 341/15/2018- TRU] (Mohit Tewari) Under Secretary to the Government of India Note: The principal notification No.50/2017-Customs, dated the 30 th June, 2017 was published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide, number G.S.R. 785(E), dated the 30 th June, 2017 and last amended, vide, notification No. 54/2018 -Customs, dated the 20 th July, 2018, published, vide, number G.S.R.667 (E), dated the 20 th July,

21 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) Notification No. 68 /2018-Customs (N.T.) New Delhi, the 3 rd August, 2018 G.S.R. (E). In exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following regulations further to amend the Courier Imports and Exports (Clearance) Regulations, 1998, namely: - 1. (1) These regulations may be called the Courier Imports and Exports (Clearance) Amendment Regulations, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Courier Imports and Exports (Clearance) Regulations, 1998 (herein after referred to as the said regulations), in regulation 2, in sub regulation (2), in clause (e), - (i) in sub-clause (iii), for the proviso, the following proviso shall be substituted, namely: - Provided that this sub-clause shall not apply to goods notified in Appendix 3C of the Foreign Trade Policy ( ), under the Merchandise Exports from India Scheme (MEIS) in consignment of value up to five lakh rupees and involving transaction in foreign exchange; ; (ii) in sub-clause (v), for the words twenty five thousand, the words five lakh shall be substituted. 3. In regulation 6 of the said regulations, in sub-regulation (3), in the first proviso for the words twentyfive thousand, the words five lakh, shall be substituted. [F. No. 450/4/2013-Cus. -IV] (Zubair Riaz) Director (Customs) Note: -The principal notification No. 87/98 -Customs (N.T.), dated the 9 th November, 1998 was published in the Gazette of India, Extraordinary, vide number G.S.R. 662(E), dated the 9 th November, 1998 and was last amended by notification No. 66/2017-Customs(N.T.), dated the 30 th June, 2017 vide number G.S.R. 811 (E), dated the 30 th June,

22 [TO BE PUBLISHED IN THE GAZETTE OF INDIA, EXTRAORDINARY, PART II, SECTION 3, SUB- SECTION (i)] Government of India Ministry of Finance Department of Revenue (Central Board of Indirect Taxes and Customs) Notification No. 69 /2018-Customs (N.T.) New Delhi, the 3 rd August, 2018 G.S.R. (E). In exercise of the powers conferred by section 157 of the Customs Act, 1962 (52 of 1962), the Central Board of Indirect Taxes and Customs hereby makes the following regulations further to amend the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, namely: - 1. (1) These regulations may be called the Courier Imports and Exports (Electronic Declaration and Processing) Amendment Regulations, (2) They shall come into force on the date of their publication in the Official Gazette. 2. In the Courier Imports and Exports (Electronic Declaration and Processing) Regulations, 2010, in regulation 2, in sub-regulation (2), - (i) in clause (b), for the proviso, the following proviso shall be substituted, namely: - Provided that this sub-clause shall not apply to goods notified in Appendix 3C of the Foreign Trade Policy ( ), under the Merchandise Exports from India Scheme (MEIS) in consignment of value up to five lakh rupees and involving transaction in foreign exchange; ; (ii) in clause (c), in sub-clause (ii), for the words, twenty five thousand, at both the places where they occur, the words five lakh shall be substituted. [F. No. 450/4/2013-Cus. -IV] (Zubair Riaz) Director (Customs) Note: -The principal notification No. 36/2010-Customs (N.T.), dated the 5 th May, 2010 was published in the Gazette of India, Extraordinary, Part II, Section 3, sub-section (i), vide number G.S.R. 385(E), dated the 5 th May, 2010 and was last amended by notification No. 28/2018- Customs(N.T.), dated the 28 th March, 2018 vide number G.S.R. 296 (E), dated the 28 th March,

23 GST UPDATES [To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)] Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Notification No. 30/2018 Central Tax New Delhi, the 30 th July, 2018 G.S.R...(E).- In exercise of the powers conferred by sub-section (6) of section 39 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter referred to as the said Act) and in supersession of notification No. 25/2018-Central Tax, dated the 31 st May, 2018, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R. 517 (E), dated the 31 st May, 2018, except as respects things done or omitted to be done before such supersession, the Commissioner hereby extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of section 39 of the said Act read with rule 65 of the Central Goods and Services Tax Rules, 2017, for the months of July, 2017 to August, 2018 till the 30 th day of September, [F. No.349/58/2017-GST(Pt.)] (Dr. Sreeparvathy S.L.) Under Secretary to the Government of India 23

24 To, F. No. 354/03/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** Circular No. 50/24/2018-GST Room No. 146G, North Block, New Delhi, 31 st July 2018 The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Withdrawal of Circular No. 28/02/2018-GST dated as amended vide Corrigendum dated and Order No 02/2018 Central Tax dated reg. The Circular No. 28/02/2018-GST, dated as amended vide Corrigendum dated was issued to clarify GST rate applicable on catering services, i.e., supply of food or drink in a mess or canteen in an educational institute. Also, Order No 02/2018-Central Tax dated , was issued to clarify GST rate on supply of food and/or drinks by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, in trains or at platforms (static units). 2. Consequent to the decisions of 28 th GST Council Meeting held on , the contents of the Circular No. 28/02/2018-GST dated as amended vide Corrigendum dated have been incorporated in Sl. No. 7 (i) of the Notification No. 13/2018-Central Tax(Rate), dated amending the Notification No. 11/2017-Central Tax (Rate) dated 28th June Also, the contents of the Order No 02/2018-Central Tax dated have been incorporated in Sl. No. 7(ia) of the Notification No. 13/2018-Central Tax(Rate), dated amending the Notification No. 11/2017-Central Tax (Rate) dated 28 th June Hence, Circular No. 28/02/2018-GST, dated as amended vide Corrigendum dated and Order No 02/2018-Central Tax dated is withdrawn w.e.f Difficulty if any, in the implementation of this Circular may be brought to the notice of the Board. Yours Faithfully, Harish Y N OSD (TRU) harish.yn@gov.in 24

25 To, F. No. 354/220/2018-TRU Government of India Ministry of Finance Department of Revenue Tax research Unit **** Circular No. 51/25/2018-GST Room No. 146, North Block, New Delhi, 31 st July 2018 The Principal Chief Commissioners/ Chief Commissioners/ Principal Commissioners/ Commissioner of Central Tax (All) / The Principal Director Generals/ Director Generals (All) Madam/Sir, Subject: Applicability of GST on ambulance services provided to Government by private service providers under the National Health Mission (NHM)- Reg. I am directed to invite your attention to the Circular No. 210/02/2018- Service Tax, dated 30 th May, The said Circular has been issued in the context of service tax exemption contained in the notification no. 25/2012- Service Tax dated at SI. No. 2 and 25 (a). The Circular states, inter alia, that the service of transportation in ambulance provided by State Governments and private service providers (PSPs) to patients are exempt under notification No. 25/2012- Service Tax dated and that ambulance service provided by PSPs to State Governments under National Health Mission is a service provided to Government by way of public health and hence exempted under notification no. 25/2012- Service Tax dated The service tax exemption at SI. No. 2 of notification No. 25/2012 dated has been carried forward under GST in the identical for vide SI. No. 74 of notification No. 12/2017- CT (R) dated The service tax exemption at serial No. 25(a) of notification no. 25/2012 dated has also been substantially, although not in the same form, continued under GST vide SI. No. 3 and 3A of the notification No. 12/2017- CT dated The said exemption entries under Service Tax and GST notification read as under. Service Tax SI. No. 2: (i) Health care services by a clinical establishment, an authorized medical practitioner or para-medics; (ii) Services provided by way of transportation of a patient in an ambulance, other than those specified in (i) above. SI. No. 25(a): Services provided to Government, a local Authority or a government authority by way of water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation GST SI. No. 74 (a) Health care services by a clinical establishment, an authorized medical practitioner or para-medics; (b) Services provided by way of transportation of a patient in an ambulance, other than those specified in (a) above. SI.No. 3: Pure services (excluding works contract service or other composite supplies involving supply of any goods) provided to the Central Government, State Government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article243g of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. SI. No. 3A: 25

26 Composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent. of the value of said composite supply provided to the Central Government, State government or Union territory or local authority or a Governmental authority or a Government Entity by way of any activity in relation to any function entrusted to a Panchayat under article243g of the Constitution or in relation to any function entrusted to a Municipality under article 243W of the Constitution. 3. Functions of Health and Sanitation is entrusted to Panchayats under Articles 243G of the Constitution of India read with Eleventh Schedule. Function of Public health is entrusted to Municipalities under articles 243W of the Constitution read with Twelfth Schedule to the Constitution. Thus ambulances are an activity in relation to the entrusted to the Panchayats and Municipalities under Articles 243G and 243 W of the Constitution. 4. In view of the above, it is clarified that the clarification contained in the Circular No. 210/2/2018- Service Tax dated 30 th May, 2018 with regard to the services provided by Government and PSPs by way of transportation of patients in an ambulance is applicable for the purpose of GST also, as the said services specifically exempt under notification No. 12/2017- Central Tax (Rate) dated vide SI. No As regards the service provided by PSPs to the state Government by way of transportation of patients on behalf of the State Governments against consideration in the form of fee or otherwise charged from the State Government, it is clarified the same would be exempt under- a. SI. No. 3 of notification No. 12/2017- Central tax (Rate) dated if it is a pure service and not a composite supply involving supply of any goods, and b. SI. No. 3A of Notification No. 12/2017- Central Tax (Rate) dated if it is a composite supply of goods and services in which the value of supply of goods constitutes not more than 25 per cent of the value of the said composite supply. 6. Difficulty if any, in the implementation of this circular may be brought to the notice of the Board. Yours faithfully, Enclosure: Susanta mishra Technical; officer (TRU) susanta.mishra87@gov.in Tel: Circular No. 210/2/ Service tax (F. No. 137/51/2016/ Service Tax, dated 30 th May, 2018) 26

27 Circular 210/2/2018-Service Tax F. No 137/51/2016 Service Tax Government of India Ministry of Finance Department of Revenue Central Board of Indirect Taxes and Customs Service Tax Wing New Delhi, the 30th May, 2018 To, All Principal Chief/Chief Commissioners of Central Excise and GST All Principal Directors General/ Directors General / Chief Commissioner AR CESTAT All Principal Commissioners/Commissioners of Central Excise & GST/AR CESTAT All Principal Additional Directors General/ Additional Directors General Madam/Sir, Subject: Applicability of service tax on ambulance services provided to government by private service providers under the National Health Mission (NHM) I am directed to draw your attention to a reference of the Ministry of Health & Family Welfare, Government of India on the above subject and analyse the manner in which the taxability has to be determined in such cases. 2. It has been stated that under the National Health Mission (NHM), a flagship programme of the Government of India, the Central Government provides technical and financial support to states to strengthen healthcare systems including for free ambulance services (Dial 102/108 services). Dial 108 is the emergency response system primarily designed to attend to patients of critical care, trauma and accident victims etc., while Dial 102 services essentially are for basic patient transport aimed to cater the needs of pregnant women and children, though other categories are also taking benefit and are not excluded. Many States are operating the ambulance Service on an outsourced model and these services are funded under the NHM and provided free of cost to all patients. In this connection the Ministry of Health & Family Welfare, has requested for a clarification whether the private service provider (PSP) is liable for payment of service tax. 3.1 The matter has been examined. It is observed that this entire project involves three legs of activities, one by the Government for the public, second by the PSP for the public and third, by the PSP for the Government. In respect of the first and the second legs of activity i.e. the ambulance services being provided by the Government and PSP to the patients, neither the State government nor the PSP charges any fee from the patients who avail of these ambulance services. The PSP however charges a fee from the State government for carrying out the third activity. 3.2 Any activity carried out by one person for another without any consideration will not be covered by the definition of service in section 65(44) B of the Finance Act, Even if a consideration was charged, by virtue of entry 2(ii) of notification no 25/2012- Service Tax dated 20th June, 2012, services provided by way of transportation of a patient in an ambulance, other than health care services by a clinical establishment, an authorized medical practitioner or paramedics, are exempted from the whole of the service tax leviable thereon. Thus the activities provided by the State government and the PSP to patients are not leviable to service tax. 27

28 3.3 As regards the activity undertaken by the PSP for the State government for which consideration is charged, attention is invited to sl.no 25(a) of the notification no 25/ Service Tax dated 20th June, The scope of the relevant exemption, in different time periods, was as follows:- In the period from to Services provided to Government, a local authority or a governmental authority by way of (a) carrying out any activity in relation to any function ordinarily entrusted to a municipality in relation to water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation; or... In the period from to Services provided to Government, a local authority or a governmental authority by way of (a) water supply, public health, sanitation conservancy, solid waste management or slum improvement and upgradation Thus it follows that, exemption is available, interalia, to services provided to Government, a local authority or a governmental authority, by way of public health. 3.5 The phrase public health is a general term and will cover a number of activities which ensure the health of the public. In the Ministry of Health & Family Welfare's reference, it has been stated that this activity of providing free ambulance services by the states is funded under the National Health Mission (NHM). One of the core values of the NHM enlisted by the Framework for implementation of National Health Mission ( ) is to strengthen public health systems as a basis for universal access and social protection against the rising costs of health care. As a part of its goals, outcomes and strategies the framework has categorically stated that NHM will essentially focus on strengthening primary health care across the country. The Framework further states that assured free transport in the form of Emergency Response System (ERS) and Patient Transport Systems (PTS) is an essential requirement of the public hospital and one which would reduce the cost barriers to institutional care. 3.6 Thus the provision of ambulance services to State governments under the NHM is a service provided to government by way of public health and hence exempted under notification no. 25/2012-Service Tax dated Yours faithfully, (Pallabika Dutta) Deputy Commissioner & OSD Service Tax - commr.st-cbec@nic.in Phone

29 Company Secretaries Delhi I Mumbai I Hyderabad I Kanpur Corporate Office: 63/12, First Floor, Main Rama Road, New Delhi Ph: /17, Mob: brijesh@bmathurco.in, brijesh@brijeshmathur.com Website: 29