SKP Group
SKP GST Update
9 November 2017
Government continues to make necessary interventions to ease the Goods and Services Tax

There have been a number of recent changes brought in by the government in respect of GST and Customs laws which we have summarised below:
 
The Central Board of Excise and Customs (CBEC) has extended due dates for the following compliances -
 
Sr no. Particulars Due Date
  1.  
Submission of GSTR-2 for the month of July 2017 30 November 2017
  1.  
Extension in time limit to view GSTR-2A for month of July 2017 30 November 2017
  1.  
Submission of GSTR-1A for the month of July 2017 1 December 2017 - 6 December 2017
  1.  
Submission GSTR-3 for the month of July 2017 11 December 2017
  1.  
Submission of GST ITC-04 - Details of inputs or capital goods sent and received back from job workers (Quarterly return - July to Sept) 30 November 2017
  1.  
Submission of GST ITC-01 - Declaration for claim of input tax credit on stock held as on date of becoming liable to pay GST 30 November 2017
  1.  
Submission of TRAN 1 and revised TRAN 1 - Declaration for claim of transitional input tax credit 30 November 2017
  1.  
Submission of FORM GST CMP-03 - Intimation of details of stock held on date preceding the registration under composition scheme 30 November 2017
  1.  
Submission FORM GST REG-26 - Information to by dealers registered under provisional basis 31 December 2017
 
IGST exemption on supply of services to Nepal & Bhutan
  • Earlier, supply of services made to Nepal and Bhutan against payments received in Indian currency were not considered as exports and IGST was applicable to  such supply.
  • The CBEC has issued Notification no. 42/2017- Integrated Tax (Rate) dated 27 October 2017 to exempt the supply of services made to Nepal and Bhutan where payment is received in Indian currency.
  • Since the service is exempt and not zero-rated, ITC reversal should be considered.
 
GST on cut pieces of fabrics
  • Earlier, there was ambiguity regarding GST rate applicable on cut pieces[1].
  • The CBEC has clarified that cut pieces would be classified as fabrics and the GST rate of 5% with no refund on input tax credit would be applicable.
 
Exempt IGST and compensation tax on imports
The government, vide Notification no. 78/2017- Customs and 79/2017- Customs dated 13 October 2017, has exempted IGST and compensation cess on imports till 31 March 2018 for the following categories -
  • Imports under Advance Authorisation (AA) scheme;
  • Imports under Export Promotion Capital Goods (EPCG) scheme; and
  • Imports by Export Oriented Units (EOU).
 
GST refund for exporter
  • The due date for GSTR - 1 return for the month of August 2017 and September 2017 has not been notified by the  government. Given this, exporters are not able to claim refunds for  IGST paid on exports.
  • In order to provide relief or refund to such exporters, the government has provided Table 6A  of form GSTR - 1 on the GSTN online portal. Exporters are required to submit details of exports under this tab to claim a  refund for such exports.
  • The procedure for claiming refund is given below -
  1. Pay taxes and file GSTR - 3B.
  2. Submit table 6A for that month.
  3. The information filed in table 6A on the GSTN portal should be shared with the customs department for the execution of release of refunds.
  4. Information provided in table 6A shall be auto-populated in the GSTR - 1 return for the relevant period and a refund would be granted on the basis of this.
  5. Information in table 6A is to be provided only for those months  wherein due dates for GSTR - 1 has been extended (i.e. August 2017 and September 2017).
 
Tariff rate on textile and fabrics
The effective rate for duty has been amended for specified textile and fabric products falling under Chapters 50 to 63 of the First Schedule of the Customs Tariff Act 1975.


________
[1]Cut pieces are fabric cut from bundles and sold in an unstitched state. These cut pieces are purchased by customers and stitched as per their desired shape and size.
SKP's comments
  1. Extension in due dates of various GST returns and forms is a welcome move amidst technical glitches faced by taxpayers on the GSTN portal.  
  2. Building an efficient and convenient interface between the GSTN portal and the customs department is another effort to reduce the working capital blockage and release refunds for exporters after the implementation of GST.  
  3. Statements from the Revenue Secretary and Finance Minister indicate that the GST rates may be up for a major overhaul. It is expected that the rates of many of the non-sin goods presently  bracketed under the 28% bracket may be brought down. The downward rate revisions may extend to other items of everyday use in the 12% and the 18% bracket.
SKP
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DISCLAIMER
This update contains general information which is provided on an €œas 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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