TMI Tax Updates - e-Newsletter
August 11, 2017
Case Laws in this Newsletter:
TMI Short Notes
GST:
Summary: When switching from the normal payment of tax to the composition scheme under the CGST Act, 2017, an assessee must reverse the Input Tax Credit (ITC) on inputs and capital goods held in stock. According to Section 18(4), the assessee must debit an amount equivalent to the input tax credit for inputs in stock and semi-finished or finished goods, adjusted by a prescribed percentage, as of the day before opting for the composition scheme. Rule 44(2) specifies that for capital goods, the ITC for the remaining useful life is calculated on a pro-rata basis, assuming a five-year useful life.
GST:
Summary: An entity switching from the GST composition scheme to the normal scheme is eligible to avail Input Tax Credit (ITC) on inputs and capital goods held in stock. According to Section 18(1)(c) of the Central Goods and Services Tax Act, 2017, credit can be claimed on inputs, semi-finished, or finished goods held before the transition date. For capital goods, Rule 40(1)(a) specifies that ITC should be reduced by 5% per quarter from the invoice date. However, Section 18(2) restricts claiming ITC on supplies received after one year from the invoice date.
Articles
By: DR.MARIAPPAN GOVINDARAJAN
Summary: The Insolvency and Bankruptcy Board of India (Information Utilities) Regulations, 2017, outlines rules for the governance, shareholding, and operation of information utilities. No individual or entity can hold more than 10% of the equity share capital, except certain institutions like government companies and banks, which can hold up to 25%. Indian residents can hold up to 51% for three years. The regulations mandate independent directors and a compliance officer, prescribe technical standards, and require a grievance redressal policy. Information utilities must ensure data protection, risk management, and provide annual user statements. They must comply with inspections and disciplinary actions by the Board.
News
Summary: Regional authorities from the Directorate General of Foreign Trade and SEZ Commissioners are convening in New Delhi on August 10-11, 2017, to discuss the impact of GST on exports and review the Foreign Trade Policy 2015-20. The meeting aims to gather specific suggestions from authorities interfacing with exporters on GST-related challenges and policy improvements. Key topics include boosting employment, supporting export-oriented MSMEs, and addressing import concerns under GST. The meeting also focuses on simplifying policy applications to enhance ease of doing business and maintaining India's recent export growth momentum in the international market.
Summary: The Ministry of Micro, Small and Medium Enterprises (MSME) supports the introduction of GST but expresses concern over its impact on the Khadi Village Industries (KVI) sector. Previously enjoying tax exemptions, many Khadi Institutions now face reduced exemption limits from Rs. 150 lakh to Rs. 20 lakh and must register under GST, paying 5% on Khadi products. The tax rates for Village Industries products have increased significantly post-GST, with items like sanitary hardware paint and marble granite now taxed at 28%. The MSME Ministry has requested the Finance Ministry to consider GST exemptions or facilitate input tax credit for Khadi Institutions.
Summary: A recent press release discussed presentations on the transitional provisions of the Goods and Services Tax (GST). These provisions are crucial for businesses transitioning from the old tax regime to the new GST system. The discussions focused on ensuring a smooth transition, addressing concerns, and clarifying procedural aspects to avoid disruptions in business operations. The aim is to facilitate compliance and understanding among stakeholders during the shift to GST.
Summary: A news release dated August 10, 2017, discusses presentations related to the Goods and Services Tax (GST) and its return process. The content focuses on updates and information provided by relevant authorities regarding GST implementation and compliance. The release aims to inform stakeholders about the procedural aspects and requirements associated with GST returns, highlighting the government's efforts to streamline tax processes and enhance understanding among taxpayers.
Summary: A press release dated August 10, 2017, discusses presentations on the Goods and Services Tax (GST) registration process. The focus is on providing information and updates related to GST registration, aiming to enhance understanding and compliance among stakeholders. This initiative is part of broader efforts to streamline tax processes and ensure effective implementation of GST regulations.
Summary: A recent presentation focused on the implementation of Tax Deduction at Source (TDS) under the Goods and Services Tax (GST) framework. The discussion highlighted the procedural aspects and compliance requirements for businesses and government entities. The initiative aims to streamline tax collection and improve transparency in transactions. The presentation, organized by a governmental body, emphasized the importance of understanding TDS provisions to ensure proper adherence to GST regulations. This measure is a part of broader efforts to enhance the efficiency and accountability of the tax system.
Summary: The Medium-term Expenditure Framework (MTEF) Statement was presented in Parliament, outlining a three-year expenditure target with associated assumptions and risks. This statement aims to align the budget with fiscal responsibility and budget management (FRBM) objectives, promoting fiscal consolidation. It includes scheme-wise projections for selected government schemes, enhancing focus on expenditure patterns. The MTEF serves as a vertical expansion of fiscal projections, integrating with the Annual Financial Statement and Demands for Grants. The presentation of the MTEF is mandated by an amendment to the FRBM Act, requiring its submission in Parliament after the budget session.
Summary: A recent press release discussed presentations on the Goods and Services Tax (GST) focusing on payment processes. The presentations aimed to provide clarity on GST payment mechanisms, ensuring stakeholders understand the procedures involved. The initiative is part of ongoing efforts to streamline tax compliance and enhance transparency in the taxation system. The event was organized to address common queries and facilitate smoother transactions under the GST framework.
Summary: The Reserve Bank of India set the reference rate for the US Dollar at Rs. 63.9437 on August 10, 2017, up from Rs. 63.7491 on August 9, 2017. Based on this rate and cross-currency quotes, the exchange rates for the Euro, British Pound, and Japanese Yen against the Indian Rupee were also updated. On August 10, 2017, 1 Euro was Rs. 75.0635, 1 British Pound was Rs. 83.0053, and 100 Japanese Yen was Rs. 58.15. The SDR-Rupee rate is determined based on this reference rate.
Notifications
Central Excise
1.
24/2017 - dated
9-8-2017
-
CE (NT)
Seeks to specify return ER-2 under rule 23 (3) of Central Excise Rules, 2017 and rule 11 (3) of CENVAT Credit rules, 2017 in supersession of Notification No. 24/2008-CE (NT)
Summary: The notification from the Government of India, Ministry of Finance, specifies the ER-2 monthly return form for export-oriented undertakings under the Central Excise Rules, 2017, and CENVAT Credit Rules, 2017. It supersedes the previous Notification No. 24/2008-CE (NT). The form requires comprehensive details on goods manufactured, cleared, and inputs received, including physical and deemed exports, duty payments, and CENVAT credits. It mandates the submission of relevant details such as excise and GST registration numbers, descriptions of goods, quantities, values, and duties payable. The notification outlines instructions for completing the form and comes into effect upon publication in the Official Gazette.
2.
23/2017 - dated
9-8-2017
-
CE (NT)
Seeks to specify return forms ER-1 & ER-3 under rule 12 of Central Excise Rules, 2017 and rule 11 (5) of CENVAT Credit Rules, 2017 in supersession of Notification No. 16/2011-CE (NT)
Summary: The Government of India, through the Ministry of Finance's Department of Revenue, has issued Notification No. 23/2017 - Central Excise (N.T.), which specifies new return forms ER-1 and ER-3 under rule 12 of the Central Excise Rules, 2017, and rule 11(5) of the CENVAT Credit Rules, 2017. This notification supersedes the previous Notification No. 16/2011-CE (N.T.). Form ER-1 is designated for monthly returns, while Form ER-3 is for quarterly returns for those eligible for exemptions based on clearance value. The notification outlines detailed instructions for completing these forms, including information on excise duties, CENVAT credit, and other relevant particulars.
GST - States
3.
ERTS (T) 65/2017/Pt/009 - dated
28-7-2017
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Meghalaya SGST
Corrigendum - Notification No. ERTS (T) 65/2017/16, dated 29.6.2017
Summary: In the corrigendum to Notification No. ERTS (T) 65/2017/16 dated June 29, 2017, issued by the Government of Meghalaya's Excise, Registration, Taxation, and Stamps Department, it is stated that the term "central tax" should be replaced with "state tax" wherever it appears. This amendment is documented under Memo No. ERTS (T) 65/2017/Pt/9-A, dated July 28, 2017, and is authorized by the Additional Chief Secretary to the Government of Meghalaya.
4.
ERTS (T) 65/2017/Pt/008 - dated
28-7-2017
-
Meghalaya SGST
Corrigendum - Notification No. ERTS (T) 65/2017/11, dated 29.6.2017
Summary: In the corrigendum to Notification No. ERTS (T) 65/2017/11, dated June 29, 2017, issued by the Government of Meghalaya's Excise, Registration, Taxation, and Stamps Department, a correction is made in column No. 3 of Sl. No. 17, heading No. 9973. The phrase "Same rate of Central Tax" is replaced with "same rate of State Tax." This amendment clarifies the applicable tax rate under the Meghalaya State Goods and Services Tax (SGST). The notification is signed by the Additional Chief Secretary to the Government of Meghalaya.
5.
ERTS (T) 65/2017/Pt/007 - dated
28-7-2017
-
Meghalaya SGST
Corrigendum - Notification No. ERTS (T) 65/2017/2, dated 29.6.2017
Summary: Corrigendum to Notification No. ERTS (T) 65/2017/2 dated June 29, 2017, issued by the Government of Meghalaya's Excise, Registration, Taxation, and Stamps Department, amends the schedule as follows: In Serial No. 45, under heading No. 0713, the description for dried leguminous vegetables is revised to exclude those in unit containers with registered brand names. In Serial No. 148, under "Any chapter," sub-item (vi) omits the phrase "[proposed GST Nil]." This update is signed by the Additional Chief Secretary to the Government of Meghalaya.
6.
ERTS (T) 65/2017/Pt/006 - dated
28-7-2017
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Meghalaya SGST
Corrigendum - Notification No. ERTS (T) 65/2017/1, dated 29.6.2017
Summary: The corrigendum to Notification No. ERTS (T) 65/2017/1, dated June 29, 2017, issued by the Government of Meghalaya's Excise, Registration, Taxation, and Stamps Department, introduces several amendments. In Schedule I, it revises the description of coffee and adds a new entry for bran and other residues. It also corrects classification codes for certain items. In Schedule II, it adds a new entry for dried citrus fruits and corrects codes for various beverages. In Schedule IV, it introduces a new entry for road tractors with engine capacity over 1800 cc.
7.
J.21011/1/2014-TAX-Loose - dated
29-6-2017
-
Mizoram SGST
The Mizoram Goods and Services Tax Rules, 2017.
Summary: The Mizoram Goods and Services Tax Rules, 2017, established under the Mizoram Goods and Services Tax Act, 2017, outline the framework for GST implementation in Mizoram. The rules cover various aspects, including the composition levy, registration procedures, conditions for tax payment, and cancellation of registration. It specifies the process for intimation and filing of forms for opting into the composition scheme, conditions for eligibility, and the rate of tax under the scheme. The rules also detail the application, verification, and issuance of GST registration, including provisions for special cases like non-resident taxable persons and entities requiring a Unique Identity Number.
8.
FIN/REV-3/GST/1/08 (Pt-1) - dated
1-8-2017
-
Nagaland SGST
The Nagaland Goods and Services Tax (Fourth Amendment) Rules, 2017.
Summary: The Nagaland Goods and Services Tax (Fourth Amendment) Rules, 2017, effective immediately, amend the Nagaland GST Rules, 2017. Key changes include extending the deadline in Rule 24 for certain actions to September 30, 2017, revising Rule 34 regarding currency exchange rates for taxable goods and services, and modifying Rule 44 on input tax credit calculations. Rule 46 now mandates specific endorsements on export invoices. Rule 61 introduces provisions for electronic filing of returns using FORM GSTR-3B. Additional amendments affect terminologies in Rules 83 and 89, and column headings in FORMS GST TRAN-1 and GST TRAN-2.
9.
FIN/REV-3/GST/1/08 (Pt-1)/380 - dated
17-7-2017
-
Nagaland SGST
Corrigendum - Notification No. F.NO. FlN/REV-3/GST/1/08 (Pt-I) “D” dated the 30th June, 2017.
Summary: The Government of Nagaland's Finance Department issued a corrigendum to its notification dated June 30, 2017, with several amendments. Changes include the reclassification of coffee to specify "roasted" types, the addition of a new entry for bran and other cereal residues, and corrections to various classification codes for goods such as citrus fruits and beverages. Additional entries for road tractors and other items were also included. These amendments aim to clarify and update the existing notification for better compliance and understanding of the State Goods and Services Tax (SGST) in Nagaland.
10.
FIN/REV-3/GST/1/08 (Pt-1) - dated
17-7-2017
-
Nagaland SGST
Corrigendum - Notification No. F.NO.FIN/REV-3/GST/1/08(Pt-1) “E” dated the 30th June, 2017.
Summary: The Government of Nagaland, Finance Department, issued a corrigendum to its notification dated 30th June 2017, regarding the State Goods and Services Tax (SGST). The amendments include a revision on page 03, Sl. No. 45 (0713), changing the description of "Dried leguminous vegetables, shelled, whether or not skinned or split" to exclude those in unit containers with a registered brand name. Additionally, on page 07, Sl. No. 148 (vi), the phrase "[proposed GST Nil]" is omitted. The corrections are documented under the reference number F.NO.FIN/REV-3/GST/1/08 (Pt-1)/379, dated 17th July 2017.
11.
12250/CT., Pol-41/1/2017 - dated
8-8-2017
-
Orissa SGST
Filing of return (GSTR-3B)
Summary: The Commissioner of State Tax in Odisha, under the authority of the Odisha Goods and Service Tax Rules, 2017, mandates that returns for specified months must be filed electronically using FORM GSTR-3B. The deadlines are set as August 20, 2017, for July 2017 returns and September 20, 2017, for August 2017 returns. This notification, effective from August 8, 2017, outlines the filing schedule for compliance with the Odisha GST framework.
12.
S.R.O. No. 344/2017 - dated
27-7-2017
-
Orissa SGST
Amendment in the Notification No. 19829-FIN-CT1-TAX-0022-2017, dated the 29th June, 2017
Summary: The State Government of Odisha, following recommendations from the GST Council, has amended Notification No. 19829-FIN-CT1-TAX-0022-2017 under the Odisha Goods and Services Tax Act, 2017. Changes include updates to various schedules regarding tax rates on specific goods. In Schedule I, modifications involve substituting figures and terms for items like Palmyra sugar and Agarbatti. Schedule II sees additions like desiccated coconuts and changes in product descriptions. Schedule III adjustments include exclusions and substitutions for items like artificial fur and optical fibers. Schedule IV revisions pertain to optical fibers and video game consoles, among others.
13.
S.R.O. No. 343/2017 - dated
27-7-2017
-
Orissa SGST
Amendments, in the Notification No. 19833-FIN-CT1-TAX-0022-2017, dated the 29th June, 2017
Summary: The State Government of Odisha, under the Odisha Goods and Services Tax Act, 2017, has amended Notification No. 19833-FIN-CT1-TAX-0022-2017 dated June 29, 2017. The amendments involve changes in the Schedule of the original notification: in Serial No. 59, the figure "9" is replaced with "7, 9 or 10," and in Serial No. 102, the figure "2302" is replaced with "2301, 2302." These changes were made following the recommendations of the Goods and Services Tax Council and are documented in S.R.O. No. 343/2017, dated July 27, 2017.
14.
F.No. 3251/CTD/GST/2017 - dated
8-8-2017
-
Puducherry SGST
Proper officer relating to provisions other than Registration and Composition under the Puducherry Goods and Services Tax Act, 2017
Summary: The Government of Puducherry's Commercial Taxes Department issued a notification assigning specific roles and responsibilities to various tax officers under the Puducherry Goods and Services Tax Act, 2017. The Joint Commissioner, Deputy Commissioner, Assistant Commissioner, and other tax officers are designated as "Proper Officers" for different functions, excluding registration and composition. Their duties include handling inspections, refunds, audits, assessments, recovery of taxes, and penalties. These assignments are effective from July 1, 2017, and aim to streamline the enforcement of tax provisions and compliance under the Act.
15.
F. No. 3240/CTD/GST/2017 - dated
8-8-2017
-
Puducherry SGST
Filing of Return in Form GSTR-3B for July & August
Summary: The Government of Puducherry's Commercial Taxes Department issued a notification mandating the electronic filing of GSTR-3B returns via the common portal. Under the Puducherry Goods and Services Tax Rules, 2017, and the Puducherry Goods and Services Act, 2017, the Commissioner of State Tax specified the deadlines for filing returns. For July 2017, the deadline is set for 20th August 2017, and for August 2017, it is 20th September 2017. This notification takes effect from 8th August 2017.
16.
G.O.Ms. No. 26/CT/2017-18 - dated
31-7-2017
-
Puducherry SGST
Appointment of Officers
Summary: The Government of Puducherry has appointed officers to various positions within the Commercial Taxes Department under the Puducherry Goods and Services Tax Act, 2017. The appointed positions include the Commissioner of State Tax, Joint Commissioners, Deputy Commissioners, Assistant Commissioners, Commercial Tax Officers, Deputy Commercial Tax Officers, and Assistant Commercial Tax Officers. The notification specifies that the appointment for the Commissioner and newly created Joint and Deputy Commissioner positions is effective from July 7, 2017, while other positions are effective from June 22, 2017. This order is issued by the Commissioner-cum-Secretary to the Government (Finance).
17.
G.O.Ms. No. 20/CT/2017-18 - dated
31-7-2017
-
Puducherry SGST
Notifies the following modes of verification.
Summary: The Government of Puducherry, through the Commercial Taxes Secretariat, has issued a notification under G.O.Ms. No. 20/CT/2017-18, dated July 31, 2017, detailing the modes of verification for the Puducherry Goods and Services Tax Rules, 2017. The authorized verification methods include Aadhaar-based Electronic Verification Code (EVC), EVC generated via net banking login on the common portal, and EVC generated on the common portal. Verification must be completed within two days of document submission. This notification is retroactively effective from June 22, 2017, as ordered by the Lieutenant-Governor.
18.
F.No.17(131)ACCT/GST/2017/2309 - dated
8-8-2017
-
Rajasthan SGST
Date of filing of GSTR-3B
Summary: The Government of Rajasthan's Commercial Taxes Department issued a notification on August 8, 2017, under the authority of the Rajasthan Goods and Service Tax Rules and Act of 2017. The notification, authorized by the Commissioner of State Taxes, mandates that the GSTR-3B returns for July 2017 and August 2017 be submitted electronically through the common portal by August 20, 2017, and September 20, 2017, respectively. This notification took effect immediately from the date of issuance.
19.
529/2017 - dated
29-6-2017
-
Uttarakhand SGST
Provisions for UN organisations, Foreign diplomatic missions and diplomatic agents
Summary: The Government of Uttarakhand, under section 55 of the Uttarakhand Goods and Services Tax Act, 2017, allows specified international organizations, including the United Nations, and foreign diplomatic missions in India to claim refunds on state tax paid for goods or services. For the United Nations or specified organizations, a certificate confirming official use is required. Foreign diplomatic missions must provide a certificate from the Ministry of External Affairs and fulfill conditions regarding the use and non-disposal of goods. Refunds cease if the Ministry withdraws the certificate. This notification is effective from July 1, 2017.
20.
528/2017 - dated
29-6-2017
-
Uttarakhand SGST
No refund of unutilised input tax credit shall be allowed in case of supply of services specified
Summary: The Government of Uttarakhand has issued a notification under the Uttarakhand Goods and Services Tax Act 2017, stating that no refund of unutilised input tax credit will be permitted for the supply of services specified in sub-item (b) of item 5 of Schedule II of the Act. This decision, made in public interest and following the recommendations of the Council, is enacted under sub-section (3) of section 54 of the Act. The notification is effective from July 1, 2017.
21.
527/2017 - dated
29-6-2017
-
Uttarakhand SGST
Activities or Transactions by public authorities shall be treated neither as a supply of goods nor supply of service
Summary: The Government of Uttarakhand issued Notification No. 527/2017, dated June 29, 2017, under the Uttarakhand Goods and Services Tax Act, 2017. It declares that activities or transactions conducted by the Central Government, State Government, or any local authority, when acting as a public authority, are neither considered a supply of goods nor a supply of services. Specifically, services related to functions entrusted to a Panchayat under Article 243G of the Constitution fall under this exemption. This notification is effective from July 1, 2017.
22.
526/2017 - dated
29-6-2017
-
Uttarakhand SGST
Provisions of reverse charge on supply of services
Summary: The Government of Uttarakhand issued a notification under the Uttarakhand Goods and Services Tax Act, 2017, mandating that certain services be subject to reverse charge. This means the recipient of the services, rather than the supplier, must pay the state tax. The services affected include transportation by goods transport agencies, legal services by advocates, services by arbitral tribunals, sponsorships, certain government services, directorial services, insurance agent services, recovery agent services, and copyright-related services. The notification clarifies definitions and will be effective from July 1, 2017.
23.
524/2017 - dated
29-6-2017
-
Uttarakhand SGST
Regarding Rate of Interest per annum for different purposes
Summary: The Government of Uttarakhand issued Notification No. 524/2017, detailing the annual interest rates applicable under various sections of the Uttarakhand Goods and Services Tax Act, 2017. Effective from July 1, 2017, the specified interest rates are 18% for sub-section (1) of section 50, 24% for sub-section (3) of section 50, 6% for sub-section (12) of section 54, 6% for section 56, and 9% for the proviso to section 56. These rates are established following recommendations from the Goods and Services Tax Council, aiming to serve the public interest.
24.
523/2017 - dated
29-6-2017
-
Uttarakhand SGST
Classes of Officers in Uttarakhand GST Act,2017
Summary: The Government of Uttarakhand issued a notification under the Uttarakhand Goods and Services Tax Act, 2017, authorizing the appointment of various classes of tax officers to implement the Act and its rules. The designated positions include Principal Commissioner or Chief Commissioner, Commissioner, Special Commissioners, Additional Commissioners, Joint Commissioners, Deputy Commissioners, Assistant Commissioners, State Goods and Service Tax Officers, and State Goods and Service Tax Inspectors. This notification, signed by the Principal Secretary, is effective from July 1, 2017.
25.
522/2017 - dated
29-6-2017
-
Uttarakhand SGST
Exempt intra-state supplies received by a registered person from a non- registered person, provided that the amount shall not exceed 5,000/- in a day
Summary: The Government of Uttarakhand, under the Uttarakhand Goods and Services Tax Act, 2017, has issued a notification exempting intra-state supplies of goods or services received by a registered person from a non-registered supplier from state tax. This exemption applies only if the total value of such supplies does not exceed 5,000 rupees in a single day. This measure is enacted in the public interest and will be effective from July 1, 2017.
26.
521/2017 - dated
29-6-2017
-
Uttarakhand SGST
List of goods in respect of which no refund of unutilised input tax credit shall be allowed
Summary: The Government of Uttarakhand issued Notification No. 521/2017 under the Uttarakhand Goods and Services Tax Act, 2017, specifying goods for which no refund of unutilized input tax credit will be allowed. This applies when the tax rate on inputs exceeds that on output supplies, excluding nil-rated or fully exempt supplies. The listed goods include various woven fabrics (silk, wool, cotton, manmade materials), knitted or crocheted fabrics, and railway-related items such as locomotives, coaches, and parts. The notification, effective from July 1, 2017, follows the Customs Tariff Act's classification guidelines.
27.
520/2017 - dated
29-6-2017
-
Uttarakhand SGST
Regarding provisions of refund to CSD
Summary: The Government of Uttarakhand, under the Uttarakhand Goods and Services Tax Act, 2017, has issued a notification allowing the Canteen Stores Department (CSD) under the Ministry of Defence to claim a refund of 50% of the State tax paid on all inward supplies of goods. This refund applies to goods intended for subsequent supply to Unit Run Canteens or authorized customers of the CSD. The notification, issued in the public interest, will be effective from July 1, 2017.
Circulars / Instructions / Orders
GST - States
1.
Order No. 01/2017-GST - dated
21-7-2017
Extension of time limit for filing intimation for composition levy under sub-rule (1) of rule 3 of the NGST Rules, 2017
Summary: The Government of Nagaland has issued an order extending the deadline for filing intimation for the composition levy under sub-rule (1) of rule 3 of the Nagaland Goods and Services Tax (NGST) Rules, 2017. Utilizing the authority granted by section 168 of the Nagaland GST Act, 2017, the deadline for submitting FORM GST CMP-01 has been extended to August 16, 2017. This extension aims to provide additional time for taxpayers to comply with the filing requirements under the NGST framework.
2.
F.NO. FlN/REV-3/GST/1/08 (Pt-1) - dated
11-7-2017
Nature of Supply/Contract and payment.
Summary: The Government of Nagaland's Finance Department issued a circular regarding the applicability of VAT and GST during the transition to the GST regime. For contracts completed before July 1, 2017, with payments received after this date, VAT applies. For contracts partially executed before and after July 1, 2017, GST applies to supplies or works executed after this date. If supply or execution was completed before July 1, 2017, but payments were made after, VAT remains applicable until all payments are completed. This guidance aims to clarify tax obligations during the transition period.
3.
23 T of 2017 - dated
23-6-2017
Maharashtra Goods and Services Tax Rules, 2017 with regards to Registration and Composition.
Summary: The Maharashtra Goods and Services Tax Act, 2017, effective from July 1, 2017, and its accompanying rules, have been published. These rules outline the procedures for registration and the option to pay tax under the composition scheme. Rules 3 to 7 specifically detail the requirements for opting for composition tax, applicable to suppliers meeting certain conditions. The relevant documents and notifications are accessible on the Maharashtra State Tax Department's website. Stakeholders are advised to review these materials to ensure compliance with the new regulations.
FEMA
4.
03 - dated
10-8-2017
Risk Management and Interbank Dealings- Reports to the Reserve Bank
Summary: Authorized Dealer Category-I banks must submit a fortnightly statement detailing their foreign currency holdings via the Online Returns Filing System within seven days of the reporting period's end. Starting August 16, 2017, these submissions should be made through the specified web portal, following the format in Annexure I. The requirement for a monthly statement of Nostro/Vostro account balances has been discontinued. These directives are issued under the Foreign Exchange Management Act, 1999, and do not affect any other legal permissions or approvals needed.
Customs
5.
34/2017 - dated
9-8-2017
Continuation of pre-GST rates of Rebate of State Levies (RoSL) for transition period of three months i.e. 1.7.2017 to 30.9.2017 for Export of Garments and textile made-up articles
Summary: The circular from the Ministry of Finance, Department of Revenue, announces the continuation of pre-GST Rebate of State Levies (RoSL) rates for garment and textile exports during the transition period from July 1, 2017, to September 30, 2017. Exporters must submit a revised undertaking to claim these rates, either electronically or manually for exports made before August 5, 2017. Export Promotion Councils will assist in this process, and Customs officers are instructed to ensure payment upon submission. The rates will be applied by the EDI system, and no separate claims are required. Public notices should be issued for guidance.
Highlights / Catch Notes
GST
-
Switching Tax Schemes: Reverse ITC on Capital Goods for Up to 5 Years; No Credit on Older Inputs.
Notes : Switching between the composition scheme and normal scheme of payment of tax - When opted for the Composition scheme, ITC on Capital Goods need to be reversed upto 5 years, there is no limit on inputs held in stock - But when opted out from the composition scheme, credit cannot be availing on inputs and capital goods which are more than 1 years old.
-
Transitioning to GST Composition Scheme: Determine ITC Reversal for Stock and Compliance with Regulations.
Notes : Switching from normal payment of tax composition scheme - Whether the assessee is liable to reverse Input Tax Credit (ITC) on inputs or capital goods held in stock? How to calculate reversal of ITC in such case?
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Assessee Switching from Composition to Normal Scheme Can Avail Input Tax Credit on Stock, Subject to GST Conditions.
Notes : Switching from composition scheme to normal scheme of payment of tax - Whether the assessee is eligible to avail Input Tax Credit (ITC) on inputs or capital goods held in stock?
Income Tax
-
High Court Orders Reassessment of Petitioner's Income from Property Sale in Accordance with Grandmother's Case u/s 264.
Case-Laws - HC : Revision u/s 264 - petitioner and his grandmother are co-owners of property sold - joint ownership - seeking the petitioner's income in respect of the transaction pertaining to the said property, be determined in accordance with the decision of the High Court in the petitioner's grandmother's case - AO directed to re-do the assessment - HC
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High Court Vacates Attachment Order on Bank Account Due to Tax Department's Inaction for Over 7 Months.
Case-Laws - HC : Provisional attachment of bank account u/s 281B - search and seizure activity - even after expiry of period in excess of seven months, department did not take any action - attachment order vacated - HC
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Deemed Dividend Taxation Update: Section 2(22)(e) specifies tax liability on registered shareholders, not deemed shareholders.
Case-Laws - AT : Addition towards deemed dividend u/s 2(22)(e) - payment made to assessee company - the deemed dividend is taxable in the hands of the registered share holder but not in the hands of the deemed shareholders.
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India-Singapore DTAA Article 24 Limits India's Jurisdiction on Shipping Income; Article 8 Governs Taxation Rights.
Case-Laws - AT : Applicability of Article 8 vis-a-vis Article 24 of DTAA - DTAA between India and Singapore - shipping income - Article 24 only envisages territorial and jurisdictional rights for taxing the income and India has no jurisdiction for any taxing right which are governed by Article 8. There is no stipulation about exemption under Article 8 of the shipping income
Customs
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Anti-Dumping Duties Imposed on Opal Glassware from China and UAE to Protect Domestic Industries from Unfair Pricing.
Notifications : Anti-dumping duty on "Opal Glassware", originating in or exported from China PR and UAE imposed
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Pre-GST Rebate of State Levies Extended for Garments and Textiles Exports from July 1 to September 30, 2017.
Circulars : Continuation of pre-GST rates of Rebate of State Levies (RoSL) for transition period of three months i.e. 1.7.2017 to 30.9.2017 for Export of Garments and textile made-up articles - Circular
Corporate Law
-
Company Articles Must Align with Memorandum of Association to Avoid Frustration of Corporate Objectives and Purpose.
Case-Laws - HC : Articles are internal regulations of a Company. It is a subordinate document to the Memorandum of Association. If companies were unable to alter their memorandum or Articles of Association to give effect to their desire changes, the corporate enterprise is likely to get frustrated and the purpose and object for which the company was formed would get defeated. - HC
State GST
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Clarification on VAT vs. GST for Pre-July 1, 2017 Contracts: Determine Applicable Tax Based on Supply Timing.
Circulars : Levy of VAT or GST on Supply of goods / works contract - where work was started before 1.7.2017 or contract was entered into prior to 1.7.2017 - Time of supply - A Clarification
Service Tax
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Appellant Denied Service Tax Refund Due to Non-Protest Payment; Misses Section 11B(1) Exemption on Limitation Period.
Case-Laws - HC : Refund - Since the payment of service tax during the said period was not under protest, the Appellant was unable to take advantage of the second proviso under Section 11B (1) of the CE Act which states that the limitation of one year will not apply where any duty and interest has been paid under protest. - HC
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