NEWSLETTER GIST OF CONTENTS HEADINGS GST INCOME TAX

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1 NEWSLETTER HEADINGS GIST OF CONTENTS GST Seeks to prescribe the due dates for filing FORM GSTR- 3B for the months from July, 2018 to March, 2019 In exercise of the powers conferred by section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act) read with sub-rule (5) of rule 61 of the Central Goods and Services Tax Rules, 2017 (hereafter in this notification referred to as the said rules), the Commissioner, on the recommendations of the Council, hereby specifies that the return in FORM GSTR-3B of the said rules for each of the months from July, 2018 to March, 2019 shall be furnished electronically through the common portal, on or before the twentieth day of the month succeeding such month. GST Notification Seeks to lay down the special procedure for completing migration of taxpayers who received provisional IDs but could not complete the migration process. INCOME TAX In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017), the Central Government, on the recommendations of the Council, hereby specifies the persons who did not file the complete FORM GST REG26 of the Central Goods and Services Tax Rules, 2017 but received only a Provisional Identification Number (PID) (hereinafter referred to as such taxpayers ) till the 31st December, 2017 may now apply for Goods and Services Tax Identification Number (GSTIN). GST Notification SBS Global is an independent member of BOKS International Limited, an international alliance of professional business advisors. SBS Global is a separate and independent legal entity to BOKS International Limited with its member firms of the BOKS alliance, and is solely responsible for the work it carries out and services it provides to its clients. BOKS International Limited and the other members of the BOKS alliance are not responsible and have no liability for the acts or omissions of SBS Global and likewise SBS Global has no liability for the acts or omissions of other member firms.

2 GIST OF CONTENTS GST Notification issued to extend the due date for filing of FORM GSTR-6 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 31st May, 2018, the Commissioner hereby extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6. GST Notification Seeks to prescribe the due dates for furnishing of FORM GSTR-1 for those taxpayers with aggregate turnover of more than Rs. 1.5 crores for the months from July, 2018 to March, 2019 In exercise of the powers conferred by the second proviso to sub-section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 of the Central Goods and Services Tax Rules, 2017, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year, for each of the months from July, 2018 to March, 2019 till the eleventh day of the month succeeding such month. Read GST Notification Seeks to prescribe the due dates for quarterly furnishing of FORM GSTR- 1 for those taxpayers with aggregate turnover of upto Rs.1.5 crores for the period from July, 2018 to March, 2019 In exercise of the powers conferred by section 148 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby notifies the registered persons having aggregate turnover of up to 1.5 crore rupees in the preceding financial year or the current financial year, as the class of registered persons who shall follow the special procedure as mentioned below for furnishing the details of outward supply of goods or services or both. Read GST Notification

3 GIST OF CONTENTS DIRECT TAX Income-tax (8th Amendment) Rules, 2018 In exercise of the powers conferred by section 44AB read with section 295 of the Income-tax Act, 1961 (43 of 1961) (hereinafter referred to as the Income-tax Act), the Central Board of Direct Taxes hereby makes the Income tax (8th Amendment) Rules, 2018 further to amend the Income-tax Rules, 1962 Income Tax-Notification Central Government hereby notifies NSE IFSC limited, as a 'recognized stock exchange In exercise of the powers conferred under clause (ii) of Explanation 1 of clause (d) of proviso to sub-section (5) of Section 43 of the Income-tax Act, 1961 (43 of 1961) read with sub-rule (4) of Rule 6DDB of the Income-tax Rules, 1962, the Central Government hereby notifies NSE IFSC limited, Gandhinagar, Gujarat (PAN: AAFCN4161P) as a 'recognized stock exchange' Income Tax-Notification Corrigendum Notification amending DTAA Corrigendum to Agreement between the Government of the Republic of India and the Government of the State of Qatar for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income (hereinafter referred to as the DTAA ) was signed on the 7th April, Income tax Notification

4 GIST OF CONTENTS MINISTRY OF CORPORATE AFFAIRS Amendment of rules under Companies Act, In exercise of the powers conferred by the Companies Act, 2013, the Central Government hereby makes the following rules to further amend the existing rules. Companies (Prospectus and Allotment of Securities) Second Amendment Rules, 2018 Companies (Accounts) Amendment Rules, 2018 Companies (Incorporation) 3rd Amendment Rules 2018 Commencement Notification of various sections under Companies Act. In exercise of the powers conferred by subsection (2) of section 1 of the Companies (Amendment) Act, 2017 (1st of 2018), the Central Government hereby notifies following commencement notification. MCA Commencement Notification MCA Commencement Notification MCA Commencement Notification

5 GIST OF CONTENTS RESERVE BANK OF INDIA Diversification of activities of Standalone Primary Dealers- Foreign Exchange Business In order to facilitate SPDs to provide comprehensive services to their FPI clients, it has been decided to permit them to offer foreign exchange products to their FPI clients, as permitted by the Bank from time to time. Such activities shall be part of their non-core activities. RBI Notification Liquidity Adjustment Facility Repo and Reverse Repo Rates 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 RBI Notification INCOME TAX Change in Bank Rate The Bank Rate stands adjusted by 25 basis points from 6.50 per cent to 6.75 per cent with immediate effect. RBI Notification Maintenance of CRR/SLR on Foreign Currency Assets/Liabilities Reference rate for INR/USD and exchange rate of other major currencies. 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, RBI Notification

6 RELATED TO GST RATES ON GOODS & SERVICES RELATED TO GST RATES ON GOODS & SERVICES Goods and Service Tax (GST) is an indirect tax levied on the supply of goods and services. This law has replaced many indirect tax laws that previously existed in India. There are 3 taxes applicable under this system: CGST, SGST & IGST.CGST: Collected by the Central Government on an intra-state. SGST: Collected by the State Government on an intra-state. IGST: Collected by the Central Government for inter-state sale. CBIC issued notifications related to GST Rates on Goods & Services on 26th July 2018 which are effective from 27th July GST Council meeting held at New Delhi on 21st July 2018 has made recommendations/ decisions on issues relating to policy, law and procedures, including key recommendations on reduction in GST rates of more than 50 items, rationalization of return filing system for small taxpayers, further deferring RCM up to 30 Sept

7 RELATED TO GST RATES ON GOODS & SERVICES Below mentioned is the summary detailing the summary of important notifications issued by CBEC on 26th July 2018: S.NO NO. SUMMARY OF THE RELATED TO GST RATES ON GOODS & SERVICES 1 Notification No- 13/2018- Central Two explanations has been inserted under S.No- 7(i) to clarify the places where such services can be supplied and it specifically excludes supplies covered in S. No. 5. I.e. outdoor catering. A new item (ia) has been inserted in S.No-7 wherein an option has been given by way of insertion of item (ia) to tax supply of goods, being food or any other article for human consumption or any drink, by the Indian Railways or Indian Railways Catering and Tourism Corporation Ltd. or their licensees, whether in trains or at platforms at 5% without claiming input tax credit. The word declared tariff wherever occurred has been substituted with the word value of supply providing a major relief to the hotel industry wherein rate of tax on accommodation services shall be based on transaction value instead of declared tariff. The description contained in item (v) in S. No. 7 dealing with outdoor catering services has been rationalized to include only those supplies by way of or as part of any service, of goods, being food or any other article for human consumption or any drink, at Exhibition Halls, Events, Conferences, Marriage Halls and other outdoor or indoor functions that are event based and occasional in nature. A new item (via) has been included in S. No- 9 wherein tax rate of 12% has been prescribed where there is multi modal transportation of goods. In S.No-22, a specific rate of 5% has been prescribed on supply of e- books.

8 RELATED TO GST RATES ON GOODS & SERVICES RELATED TO GST RATES ON GOODS & SERVICES 2 Notification No- 14/2018- Central Central government has included the below services in exemption notification:- 1. Services by an old age home run by Central Government, State Government or by an entity registered under Section 12AA of the Income-tax Act, 1961 to its residents (aged 60 years or more) against consideration upto twenty-five thousand rupees per month per member. 2. Services supplied by electricity distribution utilities by way of construction, erection, commissioning, or installation of infrastructure for extending electricity distribution network upto the tube well of the farmer or agriculturalist for agricultural use. 3. Services by Coal Mines Provident Fund Organization to persons governed by the Coal Mines Provident Fund and Miscellaneous Provisions Act, Services by National Pension System (NPS) Trust to its members against consideration in the form of administrative fee. 5. Services supplied by Central Government, State Government, Union territory to their undertakings or PSUs by way of guaranteeing the loans taken by such undertakings or PSUs from the financial institutions. 6. Services by way of licensing, registration and analysis or testing of food samples supplied by the Food Safety and Standards Authority of India (FSSAI) to Food Business Operators. 7. Services by way of artificial insemination of livestock (other than horses). 8. Services supplied by a State Government to Excess Royalty Collection Contractor (ERCC) by way of assigning the right to collect royalty on behalf of the State Government on the mineral dispatched by the mining lease holders. 9. Services provided by an unincorporated body or a non-profit entity registered under any law for the time being in force, engaged in activities relating to the welfare of industrial or agricultural labour or farmers; or promotion of trade, commerce, industry, agriculture, art, science, literature, culture, sports, education, social welfare, charitable activities and protection of environment, Supply of services provided by State and Central educational boards to students for conduct of examination will be exempt.

9 RELATED TO GST RATES ON GOODS & SERVICES RELATED TO GST RATES ON GOODS & SERVICES 3 Notification No- 15/2018- Central 4 Notification No- 16/2018- Central 5 Notification No- 17/2018- Central 6 Notification No- 18/2018- Central 7 Notification No- 19/2018- Central Tax shall be paid under RCM wherein services are supplied by Individual Direct Selling Agents (DSAs) other than a body corporate, partnership or limited partnership firm to a banking and NBFC, located in taxable territory. Explanation has been inserted in order to clarify the meaning of Renting of immovable property as means allowing, permitting or granting access, entry, occupation, use or any such facility, wholly or partly, in an immovable property, with or without the transfer of possession or control of the said immovable property and includes letting, leasing, licensing or other similar arrangements in respect of immovable property. Central Government, State government, union territory or any local authority in which they are engaged as public authority by way of services in relation to a function entrusted to a Panchayat, Municipality under the article 243W of the constitution shall be treated neither supply of goods nor a supply of service An explanation has been inserted in S.No- 3(vi)(a) in order to clarify the meaning of business to state that the term business shall not include any activity or transaction undertaken by the CG, SG or any local authority in which they are engaged as public authorities. Central Government has amended Notification No. 01/2017-Central dated June 28, 2017 dealing with list of applicable tax rates on various goods, to provide revised list of rate classification. Central Government has amended Notification No. 02/2017-Central dated June 28, 2017 dealing with list of exempted services. Items added in the exemption notification are:- 1. Stone/Marble/Wood Deities 2. Rakhi [other than that of precious or semi-precious material of chapter 71] 3. Sanitary Napkins, 4. Coir pith compost 5. Sal Leaves siali leaves and their products and Sabai Rope 6. Phool Bhari Jhadoo [Raw material for Jhadoo] 7. Khali Dona. 8. Circulation and commemorative coins, sold by Security Printing and Minting Corporation of India Ltd [SPMCIL] to Ministry of Finance.

10 RELATED TO GST RATES ON GOODS & SERVICES RELATED TO GST RATES ON GOODS & SERVICES 8 Notification No- 20/2018- Central 9 Notification No- 21/2018- Central Central Government has amended Notification No. 5/2017-Central, dated June 28, 2017, where under list of goods were mentioned in respect of which no refund of unutilized input tax credit was allowed where the credit has accumulated on account of inverted duty structure. In the said notification, list of items contained in serial numbers 1, 2, 3, 4, 5, 6, 6A, 6B, 6C and 7 (pertaining to fabric sector) has been amended so as to allow refund of accumulated ITC arising on account of inverted duty structure on supplies received on or after August 01, In respect of any supplies received before such date, the accumulated ITC shall lapse. Central Government has amended notification No. 01/2017-Central, dated June 28, 2017 to provide concession in rate of GST on handicraft goods. 10 Notification No- 2/2018 Compensation Cess (Rate) No GST compensation cess would be levied on fuel cell motor vehicles and on coal rejects supplied by a coal washery. Quality Policy We are committed to provide world-class service to our customers. We shall continuously improve the processes and apply quality practices to meet or exceed client requirements resulting in customer satisfaction. Synergy Business Solutions (India) Private Limited. Lakshmi Chambers, 1st Main, C Block AECS Layout, Brookefield, Bangalore India, Tel: Website: SBS Global is an independent member of BOKS International Limited, an international alliance of professional business advisors. SBS Global is a separate and independent legal entity to BOKS International Limited with its member firms of the BOKS alliance, and is solely responsible for the work it carries out and services it provides to its clients. BOKS International Limited and the other members of the BOKS alliance are not responsible and have no liability for the acts or omissions of SBS Global and likewise SBS Global has no liability for the acts or omissions of other member firms. Disclaimer: The entire contents of this document have been prepared on the basis of relevant provisions and as per the information existing at the time of the preparation. Though utmost efforts has made to provide authentic information, it is suggested that to have better understanding kindly cross-check the relevant sections, rules, notifications under various Acts.