TMI BlogChanges in Circulars issued earlier under the CGST Act, 2017X X X X Extracts X X X X X X X X Extracts X X X X ..... eeding paragraphs. 3 . Circular No. 8/8/2017 dated 04.10.2017 The circular is revised in view of the amendment carried out in section 2(6) of the IGST Act, 2017 vide section 2 of the IGST (Amendment) Act, 2018 allowing realization of export proceeds in INR, wherever allowed by the RBI. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 3.1 Original Para 2(k) Realization of export proceeds in Indian Rupee : Attention is invited to para A (v) Part- I of RBI Master Circular No. 14/2015-16 dated 01st July, 2015 (updated as on 05th November, 2015) , which states that there is no restriction on invoicing of export contracts in Indian Rupees in terms of the Rules, Regulations, Notifications and Directions framed under the Foreign Exchange Management Act, 1999 . Further, in terms of Para 2.52 of the Foreign Trade Policy (2015-2020) , all export contracts and invoices shall be denominated either in freely convertible currency or Indian rupees but export proceeds shall be realized in freely convertible currency. However, export proceeds against specific exports may also be realized in rupees, provided it is thr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the amendment carried out in section 143 of the CGST Act, 2017 vide section 29 of the CGST (Amendment) Act, 2018 empowering the Commissioner to extend the period for return of inputs and capital goods from the job worker. Further on account of amendment carried out in s ection 9(4) of the CGST Act, 2017 vide section 4 of the CGST (Amendment) Act, 2018 done in relation to reverse charge, certain amendments to the Circular are required. Accordingly, the original and the amended relevant para of the circular are detailed hereunder. 4.1 Original Para 2 . As per clause (68) of section 2 of the CGST Act, 2017 .. Subsequently, on completion of the job work (by the last job worker), the principal shall either bring back the goods to his place of business or supply (including export) the same directly from the place of business/premises of the job worker within one year in case of inputs or within three years in case of capital goods (except moulds and dies, jigs and fixtures or tools). 4.2 Amended Para 2 . As per clause (68) of section 2 of the CGST Act, 2017 , job work means any treatment or process undertaken by a person on goods belonging to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay be noted that the responsibility for sending the goods for job work as well as bringing them back or supplying them has been cast on the principal. 4.5 Original Para 6.1 Doubts have been raised ... It may be noted that the job worker is required to obtain registration only if his aggregate turnover, to be computed on all India basis, in a financial year exceeds the specified threshold limit (i.e. ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu Kashmir) in case both the principal and the job worker are located in the same State. .. However, exemption from registration has been granted in case the aggregate turnover of the inter-State supply of taxable services does not exceed ₹ 20 lakhs or ₹ 10 lakhs in case of special category States except Jammu Kashmir in a financial year vide notification No. 10/2017 Integrated Tax dated 13.10.2017 . Therefore, . . States. 4.6 Amended Para 6.1 Doubts have been raised about the requirement of obtaining registration by job workers when they are located in the same State where the principal is located or when they are located in a State different from that of the pri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 of the CGST Act . The value of services would be determined in terms of section 15 of the CGST Act and would include not only the service charges but also the value of any goods or services used by him for supplying the job work services, if recovered from the principal. Doubts have been raised whether the value of moulds and dies, jigs and fixtures or tools which have been provided by the principal to the job worker and have been used by the latter for providing job work services would be included in the value of job work services. In this regard, attention is invited to section 15 of the CGST Act which lays down the principles for determining the value of any supply under GST. Importantly, clause (b) of sub-section (2) of section 15 of the CGST Act provides that any amount that the supplier is liable to pay in relation to the supply but which has been incurred by the recipient will form part of the valuation for that particular supply, provided it has not been included in the price for such supply. Accordingly, it is clarified that the value of such moulds and dies, jigs and fixtures or tools may not be included in the value of job work services provided its value ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5.1 Original Para 2(k ) In case the proposed tax and penalty are not paid within seven days from the date of the issue of the order of detention in FORM GST MOV-06 , the action under section 130 of the CGST Act shall be initiated by serving a notice in FORM GST MOV-10 , proposing confiscation of the goods and conveyance and imposition of penalty . 5.2 Amended Para 2(k) In case the proposed tax and penalty are not paid within fourteen days from the date of the issue of the order of detention in FORM GST MOV-06 , the action under section 130 of the C GST Act shall be initiated by serving a notice in FORM GST MOV-10 , proposing confiscation of the goods and conveyance and imposition of penalty. 5.3 Further, FORM GST MOV-08 and FORM GST MOV-09 , annexed to the circular are revised as below: FORM GST MOV-08 (para 4) And if all taxes, interest, penalty, fine and other lawful charges demanded by the proper officer are duly paid within fourteen days of the date of detention being made in writing by the said proper officer, this obligation shall be void. FORM GST MOV-09 (para 10) You are hereby directed to make the payment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding filing returns, under GST Act during the pendency of the proceedings related to cancellation. Although the provisions of CGST (Amendment) Act, 2018 have not yet been brought into force, it will be prudent for the field formations may not to issue notices for non- filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the CGST Act. However, the requirement of filing a final return, as under section 45 of the CGST Act , remains unchanged. 7.2 Amended Para 11 . It is pertinent to mention here that s ection 29 of the CGST Act has been amended by the CGST (Amendment) Act, 2018 to provide for Suspension of registration. The intent of the said amendment is to ensure that a taxpayer is freed from the routine compliances, including filing returns, under GST Act during the pendency of the proceedings related to cancellation. Accordingly, the field formations may not issue notices for non- filing of return for taxpayers who have already filed an application for cancellation of registration under section 29 of the CGST Act . Further, the requirement of filing a final return, as under section ..... X X X X Extracts X X X X X X X X Extracts X X X X
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