Latest amendments from the CBEC

Central Govt. amends Central Goods & Services Tax Rules 2017 to notify provisions relating to the following. These amends will be effective from July 1st, 2017.

  • Valuation
  • Input Tax Credit
  • Tax Invoice
  • Credit and Debit Notes
  • Accounts and Records
  • Returns
  • Payment of Tax
  • Refund
  • Assessment & Audit
  • Advance Ruling
  • Appeals and Revisions
  • Transitional Provisions
  • Anti-Profiteering and
  • E-way Rules

Sections 6 to 9, 11 to 21, 31 to 41, 42 except proviso to sub-section (9), 43 except proviso to sub-section (9), 44 to 50, 53 to 138, 140 to 145, 147 to 163, 165 to 174 of CGST Act shall come into force from said date.

The CBEC has also notified the number of HSN digits required on tax invoice.

  • A registered person having annual turnover upto Rs. 1.50 Cr in preceding FY will not be required to mention any HSN digits
  • For a registered person with turnover between Rs. 1.50 Cr to Rs. 5 Cr shall mention 2 digits
  • Those above Rs. 5 Cr shall mention 4 digits of HSN

This notification also covered interests under various cases, applicable on a per annum basis. We have listed that below:

  • 18% interest is fixed for delayed payment of tax u/s 50(1)
  • 24% interest is fixed in case of excess claim of ITC or undue / excess reduction in output liability
  • 6% interest in case of withheld refund
  • 6% interest in case of delayed refund pursuant to order
  • 9% interest for delayed refund pursuant to order of Adjudicating Authority, Appellate Authority or Appellate Tribunal or Court

Further, the Finance Ministry also notified regarding IGST provisions, reverse-charge on goods, ineligible ITC refunds, and CSD exemptions.

Central Govt. notifies the sections under the IGST Act:

  • Sections 4 to 13 (administration, levy and collection, power to grant exemption, determination of nature of supply, place of supply of goods and services),
  • 16 to 19 (zero rated supplies, apportionment & settlement of taxes, transfer of ITC, taxes wrongfully collected and paid),
  • 21 (import of services on or after appointed day),
  • 23 to 25 (power to make regulations, laying of rules, regulations and Notifications, and removal of difficulties)

In addition, the CBEC has also notified regarding reverse charge as:

    Supplies of cashew nuts (not shelled or peeled), biddi wrapper leaves (tendu), tobacco leaves by an agriculturist, supply of silk yarn by person manufacturing silk yarn from raw silk or silk worm cocoons, supply of lottery by State Govt. / Union Territory or any other local authority to lottery distributor or selling agent, will be taxable on reverse charge basis u/s 5(3) of IGST Act

No refund of unutilized ITC shall be allowed (on account of inverted duty structure) on a list of supplies which include woven fabrics and railway trams, tracks etc.

The notification also stated that 50% refund to Canteen Stores Department in respect of Integrated tax paid on all inward supplies for purpose of subsequent supply of such goods to Unit Run Canteens of CSD or to authorized customers of CSD will be applicable.

Moreover, no integrated tax shall be payable on supply of goods by CSD to Unit Run Canteens, to authorized customers as well as on supply of goods by Unit Run Canteens to authorized customers.

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