Dated 18th September, 2018

 Recent Amendments in GST Laws – September, 2018

Recent Amendments in GST Laws – September, 2018


Amendments in Central Goods and Service Tax Rules1

  • The registration of composition taxpayers who failed to file Return for three consecutive periods shall be cancelled after giving the assessee an opportunity to show cause against such cancellation. Similarly for the normal tax payers, registration shall be cancelled, if returns for continuous period of 6 months are not filed. An immunity from the said cancellation has been provided, if all such returns along with GST, interest and late fees are being paid after the receipt of notice from proper officer.2 Thereby the proper officer shall abate all the proceedings initiated in this behalf by issuing the order in Form GST-REG 20.
  • The input tax credit may be availed by the recipient of goods/services on the basis of invoice containing all the details as prescribed in the law. However, relaxation has been provided wherein the credit may be allowed on the invoice irrespective of the absence of all details as specified in Rules, provided it contains following details:
    • Amount of tax charged
    • Description of goods or services
    • Total value of supply of goods or services or both
    • GSTIN of the supplier and recipient
    • Place of supply in case of inter-State supply
  • The goods in batches or lots shall be sent under the cover of invoice or delivery challan, as the case may be, following the same procedure as applicable to the goods being transported in semi knocked down or completely knocked down condition.3Henceforth, when goods are sent in batches or lots, following procedure shall be followed by the supplier:
    • upplier shall issue complete invoice before the dispatch of first consignment. However, the original invoice shall be sent along with the last consignment.
    • Each consignment shall be sent under the cover of delivery challan along with the duly certified copy of invoice.
    • Delivery challan sent with each consignment shall contain the reference of invoice.
  • Amendment has been made in the definition of “Adjusted total turnover”, which was not allign to numerator turnover in the formula prescribed for refund of input tax credit for zero rated supplies. Hitherto, numerator turnover, which is a sum total of turnover of zero rated supplies of goods and services completed during a quarter excluding advance received for uncompleted services. Such exclusion of advance received for un completed services was not provided in the denominator, i.e. adjusted total turnover. Henceforth, said anamoly has been set right by excluding advance received for un completed services both from numerator and denominator. The same has been kept similar to what was prevailing under the Service Tax regime for the Service exporters.
  • The person in charge of a conveyance transporting imported goods shall also carry a copy of the bill of entry filed by the transporter of such goods. The date and number of the bill of entry shall also be indicated in Part A of Form GST EWB-01 . Earlier the imported goods are transported under the cover of commercial invoice issued by the exporter. Since no tax was charged on such invoice, the requirement to carry bill of entry has been specified, which especially shows IGST amount to substantiate the fact of tax payment on the imported goods cleared for home consumption.
  • The following Forms have been substituted:
    • Form GST REG-20 - Order for dropping the proceedings for cancellation of registration. The same has been amended to incorporate dropping of proceedings when the pending Returns have been filed along with the applicable dues.
    • Form GST ITC-04 -Details of goods/capital goods sent to job worker and received back. Henceforth, the details of goods received back from the original job worker, goods received from another job worker and goods supplied directly from premises of job worker, shall be disclosed separately in different tables unlike one table as prescribed earlier. Further, the details of goods sent from one job worker to another job worker need not be provided unlike earlier prescribed Form.
  • The following Forms have been newly introduced:
    • Form GSTR-9 -Annual Return
    • Form GSTR-9A -Annual Return (For Composition Taxpayer)
  • The Form GST EWB-01 has been amended to include “supply in batches or lots” in reason for transportation in view of amendment brought about in the invoice Rules.
  • Extension of time limit for making declaration in respect of goods sent for job work 5

    The details of goods dispatched for job work to a job worker or received back from job worker or sent from one job worker to another job worker are furnished in Form GST ITC-04 quarterly. The time limit for filing such Form has been extended till 30th September, 2018 for the period July 2017 to June 2018.

    Levy of late fee6 for late furnishing of Returns waived off7

    The late fees levied on the registered persons for late filing of Returns have been waived off for the following classes of taxpayers:

  • The registered persons who did not file the Return in FORM GSTR-3B for the month of October, 2017 on the common portal.However,application reference number must have been generated by submission and locking off the details in the Form;
  • The registered composition taxpayerson whom late fee was erroneously levied on the common portal for the period October to December, 2017 even after filing the Return in FORM GSTR-4 by the due date;
  • The Input Service Distributors who have paid the late fee for filing or submission of the Return in FORM GSTR-6 for any tax period between the 1st day of January, 2018 and the 23rd day of January, 2018.
  • Extension of time limit for filing Form GST ITC-018

    The taxpayers registered under composition scheme shall opt out of the scheme from the day such person becomes ineligible by filing Form GST CMP-04. Thereafter, such taxable person shall pay tax under the Act and claim credit of inputs in stock, in semi-finished goods and finished goods and capital goods by filing Form GST ITC-01 within 30 days from the date from which such option is withdrawn. The composition taxpayers opting out of the scheme between the 2nd day of March, 2018 and the 31st day of March, 2018,may file Form GST ITC-01 and claim credit upto 4th October, 2018.

1 Notification No. 39/2018-Central Tax dated 4th September, 2018

2 Proviso to Rule 22(4) of Central Goods and Service Tax Rules, 2017 (newly inserted)

3 Rule 55(5) of Central Goods and Service Tax Rules, 2017

4Second proviso to rule 138A(1) of Central Goods and Service Tax Rules, 2017 (newly inserted)

5 Notification No. 40/2018-Central Tax dated 4th September, 2018

6 Section 47 of Central Goods and Service tax Act, 2017

7 Notification No. 41/2018-Central Tax dated 4th September, 2018

8 Notification No. 42/2018-Central Tax dated 4th September, 2018


Recent Amendments in GST Laws – September, 2018

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Recent Amendments in GST Laws – September, 2018

Recent Amendments in GST Laws – September, 2018
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Bhaskar Thakkar

Chief Executive officer

BT Associates, India

thakkar@btassociate.com

Twenty years of exprience in tax practice, specialist in structuring & planing and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.