SKP Group
SKP GST Update
GST implementation – Notifications issued by the Central Board of Excise and Customs
 
With GST being finally implemented, the government has brought into force certain notifications. A gist of the various notifications released by the Central Board of Excise and Customs (CBEC) is given below: 

Notification No. 15/2017 dated 1 July 2017 - Amendments to the Central Goods and Services Tax (CGST) Rules, 2017 

Following are the key amendments to the CGST Rules, 2017:
Earlier provision Amendment Effect of amendment
A new rule 96A has been added to the supply of goods for exports without payment of tax by submission of a bond or a letter of undertaking in FORM GST RFD-11 The exporter of services would now have to furnish a bond or a letter of undertaking whereas under the earlier law such requirement existed only for exporter of goods.
 























 
A registered person, entitled to carry forward the taxes paid under the current law, would have to file a declaration in FORM GST TRAN-1. In the declaration, the amount of Input Tax Credit (ITC) would mean only eligible duties as provided in Explanation 2 to Section 140 of the CGST Act, 2017























 
The eligible tax and duties to be carried forward under any existing law or on goods held in stock as on appointed date shall include:
  • Additional duty of excise under Section 3 of Additional Duties of Excise (Goods of Special Importance) Act, 1957
  • Additional duty leviable under Section 3(5) of Customs Tariff Act, 1975
  • Additional duty of excise leviable under Section 3 of the Additional Duties of Excise (Textile and Textile Articles) Act, 1978
  • Duty of excise specified in the First Schedule to the Central Excise Tariff Act, 1985
  • Duty of excise specified in the Second Schedule to the Central Excise Tariff Act, 1985
  • National Calamity Contingent Duty leviable under Section 136 of the Finance Act, 2001
  • Service tax leviable under Section 66B of the Finance Act, 1994

     
Declaration of stock held by a principal and agent under Rule 119 of CGST Rules, 2017
 
The word ‘agent’ has been substituted with the word ‘job-worker’

 
This provision shall apply to a principal and his job-worker


 

Other key GST-related amendments
 
Notification No. Subject
14/2017 dated 1 July 2017 - CGST Act, 2017 The jurisdiction of various officers has been notified
15/2017 dated 1 July 2017 - CGST Act, 2017





 
The following rules have been incorporated in CGST Rules, 2017:
  • Inspection, Search and Seizure
  • Demands and Recovery
  • Offences and Penalties
Furthermore, forms for various purposes of the aforesaid rules have been notified.
  • 18/2017 dated 30 June 2017 - CGST Act, 2017
  • 16/2017 dated 30 June 2017 - Integrated Goods and Services Tax (IGST) Act, 2017
  • 18/2017 dated 30 June 2017 - Union Territory Goods and Service Tax (UTGST) Act, 2017


     
The rate of CGST and UTGST on fertilisers has been reduced from 6% to 2.5% and the rate of IGST on fertilisers has been reduced from 12% to 5%
 



 
 
 
 
 
 
 
 

 
  • 54/2017 dated 30 June 2017 - Customs Act
  • 55/2017 dated 30 June 2017 - Customs Act


     
The notification has notified that when the goods are imported into India, Education Cess and Secondary and Higher Education Cess would not be applicable on IGST and GST Compensation cess.

However, Education Cess and Secondary and Higher Education Cess would continue to be levied on the Basic Customs Duty.
 

 
 
Update with regard to the GST-SEZ exemption

The CBEC has released three notifications in order to provide clarification regarding the exemption on import of goods and/or services by Special Economic Zone (SEZ) unit. The final trail in regard to the same subject is given below:  
Notification No. Date of the notification Description
15/2017-Integrated Tax (Rate) 30 June 2017 Exemption from IGST on import of goods and/or services by a SEZ unit and/or developer for authorised operations
17/2017-Integrated Tax (Rate) 5 July 2017 Post the release of this notification, the CBEC rescinded the above notification
18/2017-Integrated Tax (Rate) 5 July 2017 Exemption from IGST on import of services by a SEZ unit and/or developer for authorised operations
64/2017-Customs 5 July 2017 Exemption from IGST on import of goods by a SEZ unit and/or developer for authorised operations
SKP's comments
  • The reduction in the rate of GST as applicable on fertilisers would prove to be a boon to the economically strained agricultural sector.
  • The exemption of Education Cess and Secondary and Higher Education Cess from a levy on IGST in the case of imports is a welcome move.
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