SKP Group
SKP GST Update
17 July 2017
GST Implementation – Amendment in GST Rules

In our earlier alert dated 1 July 2017, a gist of all the notifications pertaining to CGST Act, 2017, CGST (Rate), IGST Act, 2017 and IGST (Rate) was provided. This alert discusses the additional provisions inserted in the rules which have been notified vide Notification No. 10/2017 and were not covered in the draft rules.

 
Input Tax Credit (ITC) Rules
Rule Description of the Rule
Rule 45 (3) The details in respect of the following needs to be disclosed in the FORM GST ITC - 4:
  1. Goods dispatched to a job-worker;
  2. Goods received from a job-worker; and
  3. Goods sent by a job-worker to another job-worker.
The details need to be provided on a quarterly basis on or before the 25th day of the month succeeding the said quarter.
Rule 45(4) If the inputs or capital goods are not returned within a period of 1 year or 3 years respectively, then it shall be deemed that that such inputs or capital goods are supplied by the principal to the job worker.

Such details need to be disclosed in FORM GSTR - 1 and the principal shall be liable to pay the applicable tax and interest.
 
Tax Invoice, Credit And Debit Note Rules
Rule Description of the Rule
Rule 46(f) If the recipient is unregistered and value of taxable supply is less than INR 50,000 and if the recipient requests such details to be recorded, then the following should be recorded:
  1. Name and address of the recipient;
  2. Address of delivery; and
  3. Name of the state and its code.
Rule 46 - proviso A registered person may issue a consolidated invoice at the end of the month of supplies on which tax is levied on reverse charge basis. However, such consolidation can when aggregate supply exceeds INR 5,000 in a day from any or all the suppliers.
 
Refund Rules
Rule Description of Rule
Rule 96 This provision deals with refund of IGST on goods exported out of India. The procedure of claiming refund and instances when the refund can be withheld is provided in this rule.
 
Furthermore, the GST has Notification No. 11/2017 dated 28 June 2017 notified the following: 
  1. Chapter, Section or heading of the services;
  2. Corresponding description of service;
  3. Percentage applicable to such service; and
  4. Conditions (if any) applicable to a service.
SKP's comments
  • The amendment in the GST rules has provided more clarity with regard to the ITC, tax invoice, debit notes, credit notes and refund mechanism.
  • The industry should keep a track of the developments to avoid any non-compliance.
SKP
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DISCLAIMER
This update contains general information which is provided on an “as is” basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This update should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this update is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

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