GST

26th GST Council Meeting Updates

The 26^th GST Council meeting held under the chairmanship of Union FM. Shri Arun Jaitley at New Delhi on 10.03.2018. There are some important decision has been taken to expedite GST reforms since it comes into force. These decisions are taken to make sure that GST registration and further compliance can be made user-friendly for taxpayers.

Press Release regarding Data Analytics

The Council has appraised the facts that CBEC and GSTN have started extensive data analysis across the number of data available to them. Through this analysis, the outcomes were very surprising that:-

1. This data analysis shows that there is a huge variance between the Amount of IGST and compensation paid by the importers at Customs ports and the GST  registration input data claimed by them in GSTR-3B.
2. There is a major difference between the GST self-declaration liability under Form GSTR-1 and Form GSTR 3B

The FM ensures that this data shall be further analyzed and accordingly action shall be taken for evasion and non –compliances.

Press Release regarding E-Way Bills

In the GST council meeting held on 10^th March 2018. The Govt has introduced the E-way bill of intrastate movement of goods and inter-state movement of goods.

The E-Way Bill for interstate movement of goods shall start from 01.04.2018 and for intra-state movement of Goods shall be announced in a phased manner but not later than 01.06.2018

There are following major improvement has been approved by the council now, are as follows:-

1. E-way bill shall only be required if the value of consignment exceeding 50,000
2. E-way bill shall not be required if the value of consignment does not exceed 50,000/-

• The Section 138(7) of CGST Rules, 2017 shall be notified at later date therefore at present there is no requirement to generate E-way bill under section 138(7) of CGST Rules,2017 where the value of consignment even exceed 50,000 /- in a single conveyance.

1. The value of exempted goods has been excluded in determining the value of consignment for the purpose of generation of E-Way Bill.
2. The Public Conveyance has been included in the mode of transportation for the purpose of generation of E-Way Bill; however, the responsibility to generate the E-way Bill shall be with consignor or consignee.
3. Railways have been exempted from generation and carrying of E-Way Bill with the condition that the Goods shall not be delivered without the production of E-way bill, however, invoice or delivery Chillan etc. shall be carried with the consignment.

• The time period of the recipient to accept or reject the consignment shall be validity period of the E-way Bill or 72 hours, whichever is earlier.
• In the case of the movement of goods on account of Job work, the registered job worker can also generate the E-way bill.

1. Consignor now delegates his power to generate the E-Way bill to the transporter, courier agency, and E-commerce operator by signing authorization letter to fill PART an of E-Way bill on his behalf.
2. Movement of Goods from the place of the consignor to transporter up to 50 KM (earlier it was 10KM) does not require filling of PART-B of E-way Bill. They have to generate PART-A of E-way Bill.
3. In 26^th GST Council meeting the Extra validity has been provided for Over Dimensional Cargo (ODC).

• In the case of E- way Bill if the goods cannot be transferred within validity period then transporter may extend the validity period only in case of transhipment or exceptional circumstances.
• The validity of one day shall be expired at the midnight of the day immediately following the date of generation of E-Way Bill.
• Once the consignment in the conveyance is verified by any tax officer, the same conveyance shall not be subject to the second check-in any state or union territory, unless and until specific information for the same is received.

1. In the case of movement of goods by railways, airways, and waterways, the E-way bill can be only generated after the commencement of movement of goods.

• Movement of Goods on account of the bill -To –ship-To supply will be handled through the capturing of the place of dispatch in Part –A of E-way Bill.

Press Release regarding Policy Changes

I Return Filling System

Under GST Return filing requirements, a normal taxpayer is required to file 3 monthly returns. But, in this initial implementation phase, the current system of returns only GSTR 1 and GSTR 3B are required to be filed.

This system has been extended for three months (From April 2018 to June 2018).

II Reverse Charge Mechanism

The Liability to pay tax under the reverse charge mechanism has been extended up to 30.06.2018.

III TDS/TCS

Section 51 & section 52 of the CGST Act^[1] has been remaining suspended till 30.06.2018.

Extension of Tax Exemptions for the exporter

1. The Export promotion Schemes has been extended up to 01.10.2018.
2. Developing a fast process of IGST & input tax credit refund.
3. Earlier the exporter has to pay the upfront GST/IGST on the input, raw materials etc. /finished goods imported/procured for the purpose of imports due to which the exporter was experiencing various difficulties due to blockage of the fund now the Govt. has introduced an interim resolution to finding various 26th GST Council Meeting tax exemption schemes.

• For Merchant Exporter:-The merchant exporter has to pay only 0.1% GST on their procured goods.
• Now the Exporter or supplier will be able to claim a refund on domestic procurement under advance authorization scheme, EPCG and EOU schemes. Now these all above scheme shall be considered as “Deemed export”

(All these avenues were made available up to 31.03.2018)

• E-Wallet scheme is introduced for the payment of 26th GST Council Meeting under Export w.e.f.01.04.2018.

Also, Read

• GST Council 23rd Meeting: Major changes in GST Rates
• 24th GST Council Meeting – An Overview
• 25th GST Council Meeting – Highlight of the Key Decisions