GOODS AND SERVICES TAX RECENT UPDATES

Central Government Waived Late Fee:-  The government has already waived late fee for any delay in filing GSTR-3B from February to June, 2020 to reduce compliance burden for small businesses having turnover less than ₹5 crore amid the covid-19 crisis. “The current requests for waiver of late fee pertain to the old period (August 2017 to January 2020)

1. Waiver of Late fee Of GSTR 3B

Central Government waived late fee for delay in filing FORM GSTR-3B for the month of July 2017 vide notification no.- 28/2017 dated 01/09/2017.

2. GST registration Exemption – Job Worker below the annual threshold limit of Rs. 20 lacs, engaged in interstate supplies exempted from registration, if goods move under E-way Bill. (vide notification no-7/2017-I.T dated 14/09/2017).
3. GST registration Exemption– Handicraft goods supplier below the annual threshold limit of Rs. 20 lakh, engaged in interstate supplies exempted from registration vide notification no-8/2017-I.T dated 14/09/2017. Hindi Tax guru Such person should have a Permanent Account Number (PAN) and goods should move under cover of e-way bill.
4. Compensation Cess on certain motor vehicles increased.

5. GST on charitable and religious trust–

D.G of taxpayers services, has issued detailed advisory on levy of tax on the services relating to charitable and religious trust, including on topics of import of services; services by and to education institutions (including institution run by charitable trusts); GST on arranging yoga and meditation camp by charitable trusts; GST on running public libraries by charitable trust; GST on hospital managed by charitable trust; GST on services provided to charitable trust; and GST on supply of goods by charitable trusts etc.

6. Reduction in GST rate on certain goods has been recommended. Important goods covered under this reduction are:
   • Cotton seed oil cakes – Nil rate, irrespective of end use.
   • Computer monitors upto 20” – New rate will be 18%. At present this rate is for monitors upto 17”.
   • Duty credit scrips – Rate will be 5%, down from 12%.
   • Idols – While the new rate will be ‘Nil’ for idols made of clay, it will be 12% in case of idols of wood, stone and metals (excluding precious metals).
   • Kitchen gas lighters – New rate is 18%.
   • Medical grade sterile disposable gloves of plastics, and plastic raincoats – New rate is 18%.
   • Statues, statuettes, etc. – Rate reduced to 12%.
   • Table and Kitchenware etc. of wood – Proposed rate is 12%.
   • Tableware, kitchenware, other household articles and toilet articles covered under Heading 6911 and 6912 – New rate is 12%.

7. Composition Scheme

Option for Composition Scheme can now be exercised till 30th of September, 2017.

8. GST on Branded Foods items:

5% GST is levied on pulses, flours and cereals, packed in the unit container and having a registered brand name. If such goods supplied without registered brand name are exempted.

Exemption notification is proposed to be amended to consider a brand registered as on 15^th may 2017 as a ‘registered brand’ for the purposes of levy of 5% GST, even if such brand is subsequently deregistered.

Registration of brand under Copyright Act, 1957 or under any law in any other country will also qualify as ‘registered brand’.

As per GST Council, a mark or name in respect of which actionable claim is available shall also be deemed to be a registered brand name.

9. Form CT-1 REQUIREMENTS

Form CT-1 which was earlier used for purchase of goods by a merchant exporter from a manufacturer without payment of excise duty. This scheme has no relevance under GST Regime since transaction between a manufacturer and a merchant exporter is in the nature of supply and such supply is not exempt under GST Regime even on submission of LUT/Bond. Therefore, such supplies would be subject to GST.

The zero rating of exports, including supplies to SEZ, is allowed only with respect to supply by actual exporter under LUT/bond or payment of IGST.

Our Corporate Professional Team is ever willing to provide assistance on any issue concerning GST, Insolvency and Bankruptcy Law, Business Model Advisory in India and Abroad, Customs Law, Corporate & Commercial Advisory, IPRs. Secretarial Compliance, Agreement Drafting & Negotiations etc. you may write us on connect@lawyer.legallands.com,  

Best Regards,

Corporate Professional Team