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The government vide Notification Nos. 26/2018-Central Tax dated 13 June 2018 and 28/2018-Central Tax dated 19 June 2018 has made following key amendments to the Central Goods and Services Tax Rules, 2017:
The government vide Notification Nos. 26/2018-Central Tax dated
13 June 2018 and 28/2018-Central Tax dated 19 June 2018 has made
following key amendments to the Central Goods and Services Tax
Rules, 2017 (CGST Rules, 2017):
Particulars
Amendment
Rule 37 - Reversal of
Input Tax Credit(ITC) in the case of non-payment of
consideration
As per Section 15(2)(b) of the CGST Act, 2017 (the Act), value
of supply includes any amount that the recipient has incurred on
behalf of the supplier, and not included in the price actually paid
or payable for the supply.
Furthermore, as per Second Proviso to Section 16(2) of the Act,
where a recipient fails to pay to the supplier within a period of
180 days from the date of issue of invoice, proportionate ITC
should be added back to the output tax liability.
Now, a proviso has been inserted to provide that, value of
supplies paid by a recipient on behalf of the supplier and not
included in price, will be deemed to have been paid by the
recipient to the supplier.
Rule 58 - Records to be
maintained by owner or operator of godown or warehouse and
transporters
A clause has been inserted whereby, a transporter who is
registered in more than one state or union territory (but having
the same PAN), has been provided an option to apply for a unique
common enrolment number.
The application is to be made in FORM GST ENR-02.
The transporter who has obtained such unique common enrolment
number would have to use it instead of his GSTIN for all purposes
related to e-Way Bill.
Sub-rule (14) of Rule
138 - Non-applicability of e-Way Bill
Movement of empty
cylinders for packing of liquefied petroleum gas for reasons other
than supply, has been exempted from requirement of generation of
e-Way Bill.
FORM GSTR-4 - Quarterly
return for registered person opting for composition levy
Details of inward supplies from a registered supplier (other
than supplies attracting reverse charge), are to be disclosed in
Table 4A of GSTR-4.
Instruction No. 10 to GSTR-4, exempts the disclosure of the
said details for tax periods of July 2017 - September 2017 and
October 2017 - December 2017.
Now, vide this amendment, such exemption has been extended for
tax periods of January 2018 - March 2018 and April 2018 - June 2018
as well.
FORM GST RFD-01 and FORM
GST RFD-01A (manual application) - Application for Refund
Now, the taxpayer would
have to provide the GSTIN of the supplier in respect of his inward
supplies in:
Statement 1A - Refund of ITC accumulated due to inverted tax
structure; and
Statement 5B - Refund on account of deemed exports, of GST
RFD-01 and GST RFD-01A.
Clarifications issued on key aspects under GST
In view of the representations received, the government has
issued certain clarifications vide Circular No. 48/22/2018-GST
dated 14 June 2018 and 49/23/2018-GST dated 21 June 2018.
Issue
Clarification
issued
Authority for Advance
Ruling (AAR), Karnataka in the case of M/s Gogte Infrastructure
Development Corporation had held that:
Hotel accommodation and restaurant services to employees and
guests of Special Economic Zone (SEZ) units, would not be treated
as supply of goods and services to SEZ units;
Place of provision of services would be the location of the
hotel, i.e. outside the SEZ and hence liable to GST; and
The supply will be treated as intra-state supply.
Now, the government has
provided the following clarifications:
If event management services, hotel accommodation services,
consumables, etc. are received by a SEZ developer or a SEZ unit for
authorized operations, as endorsed by the specified officer of the
zone, the benefit of zero rated supply shall be available in such
cases to the supplier.
Furthermore, it is an established principle of interpretation
of statutes that in case of an apparent conflict between two
provisions, the specific provision shall prevail over the general
provision. Therefore, services of short-term accommodation,
conferencing, banqueting, etc., provided to a SEZ developer or a
SEZ unit shall be treated as an inter-state supply.
Whether job workers in
the textile sector supplying job work services are eligible for
refund of unutilized ITC) on account of inverted duty structure
under Section 54(3) of the CGST Act, 2017, even if the goods
(fabrics) supplied are not eligible under Notification No.
5/2017-Central Tax (Rate) dated 28 June 2017?
The said notification specifies the goods in respect of which
refund of unutilized ITC on account of inverted duty structure
under Section 54(3) of the CGST Act shall not be allowed.
In case of job workers, the output supply is the supply of job
work services and not of goods (fabrics). Hence, the job workers
would be eligible for refund of unutilized ITC on account of
inverted duty structure.
Uncertainty in detention
of conveyance carrying multiple consignments.
When certain
consignments of an intercepted conveyance are in violation of
provisions of GST law, and the conveyance has other lawful
consignments as well, only such consignments should be detained
which are in violation of the GST law.
SKP's
Comments
In view of conflicting decisions on critical issues pronounced by
various AARs, it would be a welcome step if the government
continues its proactive approach in issuing clarifications
regarding the position of the Revenue on ambiguous issues to
minimize the difficulties faced by taxpayers.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.