Circulars issued by the Government
To erase doubts arising in the implementation of GST, the government has issued various circulars providing clarifications on vital issues. They have been encapsulated hereunder:
Circular No. and issue dealt | Effect of circular |
46/2017-Customs dated 24 November 2017 – Applicability of IGST/GST on goods transferred or sold while being deposited in a customs bonded warehouse. |
|
18/18/2017-GST dated 16 November 2017 - GST Refund of unutilized input tax credit of GST paid on inputs in respect of exporters of fabrics. |
|
Boost to exports and employment in textiles and apparels sectors
- The Ministry of Textiles has notified amended definition of rebate of state levies under clause 3.5 of scheme guidelines of Rebate on State levies (RoSL) for garments and made-ups.
Earlier definition | Amended definition (with effect from 1 October 2017) | Effect of amendment |
Rebate of State Levies shall be understood to comprise State VAT/CST on inputs including packaging, fuel, duty on electricity generation and duties and charges on purchase of grid power, as accumulated through the stages of production from yarn to finished garments. | Rebate of State Levies shall be understood to comprise VAT on fuel used in transportation (raw materials, finished goods and factory workers), VAT on fuel used in generation of captive power, Mandi tax on purchase of cotton, duty on electricity used in manufacture as accumulated from the stage of Cotton/MMF fibre till garment or made upstage, stamp duties on export documents and SGST on inputs used in the production of cotton and embedded SGST in purchases from unregistered dealers". | The scope of the definition has been widened to include, inter
alia:
|
- Post-GST rates notified under scheme
of Remission of State Levies (RoSL)
- Government vide notification no. 14/26/2010-IT dated 24 November 2017 has notified the post-GST rates under the scheme for Remission of State Levies (RoSL) on exports of readymade garments, made-ups and under Advanced Authorisation - RoSL for garments. The same has been encapsulated below:
Sr No | Items | Maximum applicable RoSL rate (with effect from 1 October 2017) |
1. | Cotton garments | 1.70% |
2. | MMF, Silk and Woolen garments | 1.25% |
3. | Apparel of blends | 1.48% |
4. | Cotton made-ups | 2.20% |
5. | MMF and silk made-ups | 1.40% |
6. | Made-ups of blends | 1.80% |
7. | Sacks and bags made of jute | 0.60% |
8. | Garments under Advanced Authorization - All Industry Rates combination | 0.66% |
- Directorate General of Foreign Trade has enhanced the rates under the Merchandise Exports from India Scheme (MEIS) from 2% to 4% on readymade garments and made ups with effect from 1st November 2017 till 30th June 2018.
Advertising services provided to central or state government or
a statutory body or a local authority
The Government vide Notification No. 12/2017-Integrated Tax has
notified the manner of determining the proportion of value
attributable to different States or Union territories, in the case
of supply of advertisement services to the Central Government, a
State Government, a statutory body or a local authority, in the
absence of any contract between the supplier of service and
recipient of services. The notification covers various scenarios in
an inter-state supply of advertisement services enunciating the
treatment to be followed by this service provider including raising
of separate invoices state wise or union territory wise. The
detailed notification can be accessed here.
Refund of excess amount in Electronic Cash Ledger
Taxpayers have been provided with a mechanism on the GST portal to claim a refund of excess amount in their Electronic Cash Ledger. This functionality can be accessed by using the following path - Visit https://www.gst.gov.in/> Login > Refund menu > Select 'Refund of excess balance in Electronic Cash Ledger' in refund type.
Anti-profiteering provisions enabled
- The Central Board of Excise and Customs (CBEC) has released Form APAF-1 for consumers to complain about profiteering under the GST regime. This form is to be filed before the Standing Committee or State level screening committee regarding rule 128 of CGST Rules, 2017.
- Consumers would be able to complain against cases of inadequate commensurate reduction of prices of goods or/and services even after a cut in GST rate or availment of the benefit of input tax credit by companies or service providers.
E-way bill notified in Uttar Pradesh
- The Uttar Pradesh (UP) government
vide notification no. KA.NI.-2-1845/XI-9 (52)/17-
U.P.Act-1-2017-Order-(94)-2017 dated 6 December 2017 has notified
e-way bill under GST. The e-way bill in Form e-way bill 02 shall be
carried with the goods if following conditions are fulfilled:
- Transportation or transit storage of taxable goods valuing rupees fifty thousand or more.
- Transportation within UP or from a place in UP to a place outside the state.
- The goods to which this rule shall apply are as follows:
|
|
- The notification will be applicable from 16 December 2017.
SKP's comments
|
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.