Introduction
Along the expected lines, Central Government has extended time lines for filing various returns under GST. A number of notifications and orders have been issued to reflect the announcements made on twitter handle. This article aims to highlight the key amendments made in GST.
IGST exemption on inter-state supply of services to Nepal & Bhutan against payment in INR
The definition of 'export of services' in the GST Law requires that the payment for such services should have been received by the supplier of services in convertible foreign exchange. That rule had created extra burden on Nepali and Bhutanese traders as they usually make payments to service provider in the Indian currency. Thus, applicability of GST on services supplied to Nepal & Bhutan was being debated. The Central Government vide Notification No. 42/2017-Integrated Tax (Rate) dated October 27, 2017, has amended Notification No. 9/2017 Integrated Tax (Rate) dated June 28, 2017, to provide exemption to supply of services having place of supply in Nepal or Bhutan, against payment in Indian Rupees.
It is to be noted that supply of goods to Nepal or Bhutan qualifies as export and thus is treated as zero rated in GST and consequently will also qualify for all the benefits available to zero rated supplies under the GST regime. However, in case of supply of services, the transaction shall be exempted from GST, but shall not qualify as export (i.e. not zero-rated).Accordingly, the issue of reversal of common credit to the extent of exempted supplies will arise.
Time limit of filing Form REG 29 for cancellation of Provisional Registration Certificate extended.1
Rule 24(4) of the CGST Rules, 2017, provides for cancellation of registration for those taxpayers who were not required to obtain registration as per GST Law provisions, but were migrated to GST as they were registered under the erstwhile tax regime. Window has now been opened for applying cancellation of registration.Further, time limit for filing such application in Form REG 29 has been extended till December 31, 2017.
Time limit of Form ITC-04 in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another Extended 2
In terms of Rule 45(3), details of inputs or capital goods sent and received back from job workers are to be furnished on a quarterly basis in Form ITC-04 on or before the 25th day of the month succeeding the said quarter. The said time limit for making the declaration in FORM GST ITC-04, in respect of goods dispatched to a job worker or received from a job worker or sent from one job worker to another, during the quarter July to September, 2017, has been extended till November 30, 2017.
Further Excel offline facility for ITC-04 has been released on the GST portal on October 24, 2017.
Smoother continuation of export refund, eventhough timelines of GSTR-1 extended
While Rule 96 of the CGST Rules, 2017 deals with refund of IGST paid on goods exported out of India, Rule 96A covers refund of unutised IGST paid while making export of goods/services under bond or letter of undertaking.
.In terms of sub-rule (2) of both these Rules, the details of the export invoices furnished in FORM GSTR-1 shall be electronically transmitted to the system designated by Customs and a confirmation that the goods covered by the said invoices have been exported out of India shall be electronically transmitted to the common portal from the said system.
A proviso has been inserted explaining that where the date of GSTR-1 is extended, the supplier shall furnish the information relating to exports as specified in Table 6A of FORM GSTR-1 after the return in FORM GSTR-3B has been furnished and the same shall be transmitted electronically by the common portal to the system designated by the Customs. Information in Table 6A so furnished shall be auto-drafted in FORM GSTR-1 for the said tax period. This would allow smoother flow of export refund eventhough the timeline for GSTR 1 gets extended.
Other Extension in time limits
- Time limit for filing Original and Revised Form TRAN1in respect of Transition Credit has been extended till 30th November, 2017.3
- Time limit of filing Form REG 26 in respect of application of final registration for existing tax payers is extended to 31st December, 2017.4
- Time limit of filing Form CMP-03by persons who opted for composition scheme to intimate the details of stock on the date of opting for such scheme has been extended to 30th November, 2017.5
- Time limit of Form ITC-01 by persons who opted for new registration/converted from composition scheme to normal scheme / converted from providing exempt to taxable supply during July-September, 2017 has been further extended to 30th November, 2017.6
Conclusion
The Government has rightfully addressed the issues faced by the trade and industry with the advent of GST. Several decisions to ease the tax compliance for small taxpayers are a shot at the right direction.
1Notification No. 51/2017-Central Tax dated October 28, 2017
2Notification No. 53/2017-Central Tax dated October 28, 2017
3Order 7/2017-GST and Order 8/2017-GST dated 28.10.2017
4 Order 6/2017-GST dated 28.10.2017
5 Order 5/2017-GST dated 28.10.2017
6Notification No 52/2017 – Central Tax (Rules) dated 13.10.2017
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Bhaskar Thakkar
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BT Associates, India
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Twenty years of experience in tax practice. Specialist in structuring & planning and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.
