GST UPDATE ON MISC POINTS IN 28TH COUNCIL MEET

GST UPDATE ON MISC POINTS 28^TH COUNCIL MEET
Some of the recommendations as discussed in the 28^th Council meeting held on 21^st July 2018 under the Chairmanship of Shri Piyush Goyal ,acting as Finance Minster along with our observations on these amendments are as under:-
1. Definition of Supply

The following transactions shall be not be treated as supply (no tax payable) under Schedule III:

a. Supply of goods from a place in the non-taxable territory to another place in the non-taxable territory without such goods entering into India;
This was important as trade and industry was demanding the same. The goods have not entered in to Indian Territory but the GST was payable only due to the fact that billing is done from India. This is a welcome step.
b. Supply of warehoused goods to any person before clearance for home consumption; and
c. Supply of goods in case of high sea sales.
This was also demanded and there was confusion whether the GST is payable twice on High sea Sale. First time, when High sea sale is done and secondly when the actual import takes place. The Government has clarified that GST is payable on import only. But the law suggested against the same. Another point was also raised that proportionate credit is to be reversed on high sea sales. Now, this amendment has put an end to all such disputes.
2. Appeals and Recovery

Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at Rs. 25 Crores and Rs. 50 Crores, respectively.

The amount of pre-deposit was 10% for first appeal and 20% for the next appeal before tribunal. The demand of trade and industry was that it should 7.5% and 10% as was in Service Tax and Central Excise regime. It was not adhered to but overall cap has been provided in these rules. Hence, this will benefit the large tax payers who have huge demands. But poor small assessee has to pay 10% in appeal before Appellate authority and 20% in appeal before appellate tribunal.

Recovery can be made from distinct persons even if present in different states.

This example will clear it. Suppose one assessee having two registrations, one in state of Rajasthan and another in Assam. If the PAN number is same and demand is pending in Rajasthan then it can be recovered from Assam unit. When the registrations are separate then the separate then the recovery should be separate only. But if refund is applied in Assam then recovery of Rajasthan will be adjusted by officer. But the modus operandi to implement this procedure is to be seen. The officer may delay the refund by saying that he has asked other unit of same PAN whether any demand is pending against him. This should not happen.
3. Credit/ Debit Notes

Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year instead of issuing and co-relating one credit/debit note against each invoice.

This was also demanded by industry at large. Suppose, discount is given to buyers on overall turnover then it is very cumbersome to issue number of credit notes linking it with invoices. The whole industry was finding it difficult. Moreover, number of credit notes is to be raised for each invoice. This has been relaxed by the department.
4. Job Work

Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.

This is also a welcome step. Otherwise, in earlier provisions, it was said the material did not return in specified period will be termed as supply. But now the permission can be taken from the commissioner.

Place of supply in case of job work of any treatment or processdone on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.

This amendment will lead to non-payment of GST on such job work
5. Multiple Registrations

Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.

Earlier it was allowed only in case of separate business vertical. But now it is allowed if the assessee wishes so then he can take separate registration. This was needed by assessee as they have separate cost centre and it was very difficult to operate separate units and then compile the data of all the units in the same state.

We hope the above is useful to you.

Your Need Our Concern…
Thanking you,
Regards,

Pradeep Jain, F.C.A.

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GST UPDATE ON MISC POINTS IN 28TH COUNCIL MEET

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