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Summary of Notifications issued on 13.10.2017 in respect to recommendation made by the GST Council in its 22nd Meeting

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Summary of Notifications issued on 13.10.2017 in respect to recommendation made by the GST Council in its 22nd Meeting
By: CASanjay Kumawat
October 16, 2017
  • Contents

List of Notifications

Based on the recommendation of the GST Council’s 22nd meeting, the Central Government has issued various Notifications to make effective/applicable all the changes as recommended by the GST Council. List of Notifications and their particulars are as follows:

 

Notification No.

 

Integrated Tax (Rate)- 13.10.2017

  1.  

Notification No. 32/2017

(On the similar lines, Notification No. 38/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

  1. Exempts the inter-State supply of goods or services or both received by a registered person from unregistered supplier from the whole of the IGST leviable thereon under section 5(4) of the IGST Act.
  1. The exemption contained in this notification shall apply to all registered persons till the 31st day of March, 2018.
  1. Applicable w.e.f. 13.10.2017.
  1.  

Notification No. 33/2017

(On the similar lines, Notification No. 32/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

  1. Seeks to amend the Entry No. 5 of the exemption Notification No. 09/2017-Integrated Tax (Rate) dated 28.06.2017.

Accordingly, this notification extends the exemption from GST to Central Government, State Government, Union territory, local authority or Governmental Authority. Earlier, exemption was available to Governmental Authority only.

Revised text should be read as follows:

  • Services by a Central Government, State Government, Union territory, local authority or Governmental Authority by way of any activity in relation to any function entrusted to a Panchayat under article 243G of the Constitution.”
  1. New exemptions have been introduced through following Entries, are as follows:

Entry No. 10C:

“Supply of service by a Government Entity to Central Government, State Government, Union territory, local authority or any person specified by Central Government, State Government, Union territory or local authority against consideration received from Central Government, State Government, Union territory or local authority, in the form of grants.”

Entry No. 22A:

“Services provided by a goods transport agency to an unregistered person, including an unregistered casual taxable person, other than the specified recipients.”

Entry No. 24A:

“Service by way of access to a road or a bridge on payment of annuity.”

  1. Widened the scope of exemption Entry No. 43 of the Notification No.09/2017- Integrated Tax dated 28.06.2017.

Revised text is as follows:

“Upfront amount (called as premium, salami, cost, price, development charges or by any other name) payable in respect of service by way of granting of long term lease of thirty years, or more) of industrial plots or plots for development of infrastructure for financial business, provided by the State Government Industrial Development Corporations or Undertakings or by any other entity having 50 per cent. or more ownership of Central Government, State Government, Union territory to the industrial units or the developers in any industrial or financial business area.”

  1. Revised meaning of the following terms are as follows:

“(zf) “Governmental Authority” means an authority or a board or any other body, -

(i) set up by an Act of Parliament or a State Legislature; or

(ii) established by any Government,

with 90 per cent. or more participation by way of equity or control, to carry out any function entrusted to a municipality under article 243 W of the Constitution or to a Panchayat under article 243 G of the Constitution.

(zfa) “Government Entity” means an authority or a board or any other body including a society, trust, corporation,

(i) set up by an Act of Parliament or State Legislature; or

(ii) established by any Government,

with 90 per cent. or more participation by way of equity or control, to carry out a function entrusted by the Central Government, State Government, Union Territory or a local authority.”.

  1.  

Notification No. 34/2017

(On the similar lines, Notification No. 33/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

Insertion of new entry for reverse charge mechanism in Notification No. 10/2017-Integrated Tax, dated 28.06.2017, are as follows:

  1. “Entry No. 12
  1. Category of Supply of Services :

Supply of services by the members of Overseeing Committee to Reserve Bank of India

  1. Supplier of service:

Members of Overseeing Committee constituted by the Reserve Bank of India

  1. Recipient of Service:

Reserve Bank of India.”

  1.  

Notification No. 35/2017

(On the similar lines, Notification No. 34/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

Change in rate of various items

  1.  

Notification No. 36/2017

(On the similar lines, Notification No. 35/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

Amended the Notification No. 02/2017-Integrated Tax (Rate) dated 28.06.2017 – Exemption for certain specified goods.

  1.  

Notification No. 37/2017

(On the similar lines, Notification No. 36/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

Insertion of new Entry No.6 in Notification No. 04/2017- Integrated Tax (Rate) dated 28.06.2017- Reverse charge mechanism for goods, is as follows:

  1. “Description of Goods: Used vehicles, seized and confiscated goods, old and used goods, waste and scrap
  2. Supplier of goods: Central Government, State Government, Union territory or a local authority.
  3. Recipient of supply: Any registered person”
  1.  

Notification No. 38/2017

(On the similar lines, Notification No. 37/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

(On the similar lines, Notification No. 07/2017-Compensation Cess (Rate) dated 13.10.2017 has been issued under GST (Compensation to States) Act, 2017 Act, 2017)

Change in the rate of tax for Motor Vehicle.

Chapter 87: Motor vehicle – 65% of integrated tax applicable otherwise on such goods under Notification No. 1/2017- Integrated Tax (Rate) dated, 28th June, 2017.

This is subject to following conditions:

  1. The Motor Vehicles was purchased by the lesser prior to 1st July, 2017 and supplied on lease before 1st July, 2017

i. The supplier of Motor Vehicle is a registered person.

ii. Such supplier had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles

Sunset period: On or after 1st July 2020.

  1.  

Notification No. 39/2017

(On the similar lines, Notification No. 31/2017-Central Tax (Rate) dated 13.10.2017 has been issued under CGST Act, 2017)

Amendments of the GST rates for the following services:

  1. Composite supply of works contract as defined in clause (119) of section 2 of the CGST Act, 2017. –
  1. Earth work related – 5%
  2. Oil and gas exploration and production (E&P)- 12%
  1. Transport of passengers by any motor vehicle – 5% or 12%
  2. Transportation of natural gas through pipeline- 5% or 12%
  3. Renting of any motor vehicle- 5% or 12%
  4. Leasing of motor vehicles purchased and leased prior to 1st July 2017- 65 % of the rate of integrated tax as applicable on supply of like goods involving transfer of title in goods.
  5. Job work for an umbrella and printing of all goods- 12%

Integrated Tax – 13.10.2017

  1.  

Notification No. 9/2017

(On the similar lines, Notification No. 38/2017-Central Tax dated 13.10.2017 has been issued under CGST Act, 2017)

 

Amendments in the Notification No.8/2017-Integrated Tax, dated the 14.09.2017.

  1.  

Notification No. 10/2017

The persons making inter-State supplies of taxable services and having an aggregate turnover not exceeding an amount of ₹ 20/10 lakh in a financial year is not required to take registration under GST law.

It may be noted that this exemption is not applicable in case of supply of taxable goods.

  1.  

Notification No. 11/2017

(On the similar lines, Notification No. 39/2017-Central Tax dated 13.10.2017 has been issued under CGST Act, 2017)

Officers, who are authorized to be the proper officers for the purposes of section 54 or section 55 of the CGST Acts by the Commissioner of the CGST Act, 2017, shall act as proper officers for the purpose of sanction of refund under section 20 of the IGST Act.

Central Tax- 13.10.2017

  1.  

Notification No. 40/2017

Notifies the registered person whose aggregate turnover in the preceding financial year did not exceed one crore and fifty lakh rupees or the registered person whose aggregate turnover in the year in which such person has obtained registration is likely to be less than one crore and fifty lakh rupees and who did not opt for the composition levy under section 10 of the CGST Act as the class of persons who shall pay the central tax on the outward supply of goods at the time of supply as specified in section 12(2)(a) of the CGST Act including in the situations attracting the provisions of section 14 of the said Act, and shall accordingly furnish the details and returns as mentioned in Chapter IX (Returns) of the CGST Act and the rules made thereunder and the period prescribed for the payment of tax by such class of registered persons shall be such as specified in the CGST Act.

  1.  

Notification No. 41/2017

Extends the time limit for furnishing the return by a composition supplier, in FORM GSTR-4 for the quarter July to September, 2017 till the 15th day of November, 2017.

  1.  

Notification No. 42/2017

Extends the time limit for furnishing the return in FORM GSTR-5A for the month of July, 2017, August, 2017 and September, 2017 by a person supplying online information and database access or retrieval services from a place outside India to a non-taxable online recipient referred to in section 14 of the Integrated Goods and Services Tax Act, 2017 and rule 64 of the Central Goods and Services Tax Rules, 2017 , till the 20th day of November, 2017.

  1.  

Notification No. 43/2017

Extends the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 for the months of July, 2017, August, 2017 and September, 2017 till the 15th day of November, 2017.

  1.  

Notification No. 44/2017

Extends the time limit for making a declaration, in FORM GST ITC-01, by the registered persons, who have become eligible during the months of July, 2017, August, 2017 and September, 2017, to the effect that they are eligible to avail the input tax credit under sub-section (1) of section 18 of the CGST Act, till the 31st day of October, 2017.

  1.  

Notification No. 45/2017

Amended the specified CGST Rules, are as follows:

  1. Rule-3 for Composition
  2. Insertion of New Rule 46A for Invoice cum bill of supply
  3. Rule 54 for consolidated tax invoices
  4. Rule 62 for GSTR-4
  5. Rule 3 for Form GST CMP-02
  6. In Form GSTR-1 , Zero rated Supply
  7. In Form GSTR-1A , Zero rated Supply
  8. In Form GSTR-4
  1.  

Notification No. 46/2017

Threshold limits for composition scheme have been increased,

  1. From 75 lakhs to 1 Crores
  2. From 50 lakhs to 75 lakhs

Compensation Cess (Rate)- 13.10.2017

  1.  

Notification No. 6/2017

Insertion of new entry for levy of cess on motor vehicle, is as follows:

  1. Entry No.:“2A
  2. Description of goods: Leasing of motor vehicles purchased and leased prior to 1st July 2017
  3. Chapter 99
  4. 65 % of the rate of cess as applicable on supply of similar goods involving transfer of title in goods.

Sunset clause: Nothing contained in this entry shall apply on or after 1st day of July, 2020”.

Compiled by:

CA Sanjay Kumawat

Partner, (GST, Customs and FTP)

KSY Associates LLP

sanjay@ksyllp.com

 

By: CASanjay Kumawat - October 16, 2017

 

 

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