Friday, 28 July 2017

HC larger bench to examine Sec. 244A interest entitlement on SA tax refund ; HCL’s reassessment quashed

SC: HC larger bench to decide on Sec. 244A interest entitlement on self-assessment tax refund
SC sets-aside Delhi HC judgement,  remands matter back to HC for  fresh decision by larger bench on the issue of grant of Sec. 244A interest on self-assessment tax  refund;  SC notes that HC had decided the issue against the assessee and had differed with the view expressed by its co-ordinate bench in Sutlej Industries Ltd. case for AY 1998-99 wherein it was held that assessee would be entitled to interest u/s. 244A on the refund of self-assessment tax; SC remarks that “In the circumstances, the appropriate course of action was to refer the matter to the larger Bench and we fail to understand why it was not done.”; Notes that the Delhi HC subsequently in later case of Sutlej Industries has referred the matter to a larger bench considering the contrary rulings; Accordingly, SC remands the appeal back to HC for its afresh decision along with Sutlej case by a larger Bench.   

Govt. amends CGST Rules; Lays down procedure upon delayed filing of 'Form GSTR-3B

Govt. notifies Central Goods and Services Tax (Fourth Amendment) Rules 2017, inter alia amends Rule 24 w.e.f. July 22 to allow cancellation of GST registration of migrated tax-payers by September 30th; Amends Rule 34 to prescribe rate of exchange as notified by CBEC u/s 14 of Customs Act for determination of value of taxable goods, while rate of exchange for taxable services shall be that determined as per generally accepted accounting principles; Amount for reversal of ITC in respect of inputs or capital goods in stock, where persons opts for composition scheme / supplies exempt goods or services / whose registration has been cancelled, shall be calculated separately for central tax, State tax, Union territory tax and integrated tax, in terms of Rule 44 w.e.f July 1; Amends third proviso to Rule 46 to provide endorsement of supplies to SEZ unit / developer on the invoice, while also amending Forms GST TRAN-1 & TRAN-2 to provide for “applicable HSN Codes”; Further amends Rule 61 to provide for e-filing of Form GSTR-3B, and where said Return is furnished after the due date for furnishing details in Form GSTR-2 (inward supplies) – (a) Part A of Form GSTR-3 shall be generated electronically on the basis of Forms GSTR-1, GSTR-2 and other liabilities of preceding tax periods, while Part B thereof, on the basis of return in Form GSTR-3B, (b) Part B of Form GSTR-3 can be modified based on discrepancies if any, between Form GSTR-3B and GSTR-3 and accordingly tax liabilities shall be discharged, (c) where ITC amount in Form GSTR-3 exceeds that in Form GSTR-3B, the additional amount shall be credited to electronic credit ledger : CBEC Notification 

Click here to read / download copy of Notification No. 17/2017-Central Tax dated July 27, 2017.

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CGST Rules notified.

This is to update you that the CBEC vide Notification No. 17/2017 – Central Tax dated July 27, 2017 has amended the CGST Rules, 2017.  Some of the key changes introduced have been highlighted hereunder:

Every person registered under any of the existing indirect tax laws, who is not liable to be registered under the GST Act, can submit an application electronically in FORM GST REG-29 at the common portal for the cancellation of such registration, on or before 30th September, 2017.  

Sunday, 16 July 2017

FinMin : GST payable on difference amount on supply of second hand goods

FinMin notifies margin scheme under GST clarifying that GST on supply of second hand goods to be payable on difference between the selling price and the purchase price in terms of Rule 32(5) of CGST Rules, 2017, however where the value of such supply is negative, same shall be ignored; Further, states that Central Tax is exempted in case of intra-state buying and selling of second hand goods where the supplier is not registered since ITC is not available on such supplies; Moreover, states that margin scheme is also applicable to supplies of old and used empty bottles : FinMin Press Release  

Govt. clarifies GST applicability on "legal services" provided by Advocates / Sr.Advocates

Legal services, which includes representational services, provided by Advocates, are under reverse charge, clarifies Finance Ministry; Govt. clarifies that legal service has been defined to mean any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority; Further, states that the words "by way of legal services", appearing in Notification No. 13/2017-Central Tax (Rate), apply to an individual advocate, senior advocate and firm of advocates; Hence, legal services provided by either of them are liable for payment of GST under reverse charge by the business entity : Finance Ministry Press Release   

Monday, 3 July 2017

No IGST on import of goods & services by SEZs

Govt. exempts all goods and services imported by SEZ unit or developer from whole of Integrated tax leviable thereon u/s 3(7) of Customs Tariff Act, for authorized operations  

Finmin notifies new Central Excise Rules, CENVAT Credit Rules & Credit Transfer Document

Finance Ministry notifies new Central Excise Rules 2017 and CENVAT Credit Rules 2017 w.e.f. July 1; Prescribes ‘Credit Transfer Document’ for unregistered dealers seeking to avail transitional ITC of manufactured goods in stock subject to specified limitations, conditions and procedures; Also exempts levy of Education Cess & Secondary and Higher Education Cess on IGST and Compensation Cess on import of goods; Notifies levy of SAD at 4% on import of petroleum crude, motor spirit (petrol), High Speed Diesel, Aviation Turbine Fuel, Liquefied natural gas and Natural Gas; Further issues various Notifications prescribing effective customs duty rates on import of various goods like electronics and petroleum products, while granting exemption to reimport of goods exported under duty drawback, rebate of duty or under bond on or after July 1 : Finance Ministry Notifications  

Registrations for tax deductors & collectors to commence from July 25

On account of deferment of TDS and TCS provisions in GST, Registration for same will commence from July 25​; Enrolment window for existing taxpayers under VAT, Excise & Service Tax to remain open for next 3 months​: GSTN

Finance Ministry notifies excise duty rates on petroleum products w.e.f July 1

Finance Ministry notifies excise duty rates on petroleum products w.e.f. today, i.e. July 1; Levies duty at Rs. 8.48 per litre on Motor Spirit (Petrol) ‘intended for sale without brand name’ vs. Rs. 9.66 per litre for ‘other’; High Speed Diesel (HSD) ‘intended for sale without a brand name’ shall attract rate Rs. 10.33 per litre excise duty while 'other' shall be taxed at Rs. 12.69 per litre; Extends exemption to ‘Kerosene’ for ultimate sale through public distribution system, 5% & 10% ethanol blended petrol, HSD oil blended with alkyl esters of long chain fatty acids, LNG, and Natural Gas (other than compressed natural gas); Aviation Turbine Fuel drawn by operators or cargo operators from the Regional Connectivity Scheme (RCS) airports to be taxed at 2% till August 25, 2019; Supersedes Notification No. 12/2012-CE : Finance Ministry Notification