1. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
GST Update
Weekly Update
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

2. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Background
This Presentation covers the GST changes / observations/ press releases/ Tweet FAQs/ Sectoral FAQs released by CBEC since the last update on It supplements the earlier GST Updates.
This presentation is based on CGST Act/Rules/ Notifications. Similar parallel provisions in State Laws may be referred to as required
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

3. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
GST Council Decisions
GST Council Decisions in its 22nd Meeting on 6th October, 2017
Foreign Trade Policy Amended on 13th October, 2017
39 Notifications, one order and two circulars issued on Central Tax and Integrated tax ; Similar notifications issued by States as well
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

4. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
No Reverse charge on purchases from URD under Section 9(4) till
Notification No. 38/2017-Central Tax (Rate) dated 13th October, 2017
Amends notification No. 8/2017-Central Tax (Rate) dated
Notification 8/2017 gave a general exemption from GST for all intra state purchases from unregistered persons by a registered person.
However proviso to para 1 of the said notification also provided that exemption will not be available if the aggregate purchases in a day from unregistered persons exceeded Rs.5000/-
The proviso has now been omitted. Now the exemption contained in notification 8/2017 shall apply to all registered persons till
This is a exemption notification for intra-state supplies; Parallel notification has been issued in the IGST Act, 2017 which exempts the inter-state purchases from URD as well.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

5. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
No Reverse charge on purchases from URD under Section 9(4) till
For Inter-State Supplies, Notification No. 32/2017-Integrated Tax (Rate) dated 13th October, 2017 has been issued
It exempts all the inter-State supply of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the integrated tax under section 5(4) of the IGST Act, 2017
The exemption is available till
Thus, all supplies received from unregistered persons shall be exempted.
This is a exemption notification for intra-state supplies; Parallel notification has been issued in the IGST Act, 2017 which exempts the inter-state purchases from URD as well.
THAT MEANS RATE CHANGES FROM 13TH OCT, SO SECTION 14 OF CGTS WILL COME INTO PLAY. CAN EXEMPTION BE CONSIDERED AS RATE OF CHANGE; SECTION 14 OVERRIDES SECTION 12 AND 13; WHETHER PAYMENT BEFORE 13 OCT OR SUPPLY; SERVICES FROM 12 AUG TO 12 SEPT WILL NOT BE TAXABLE, IF NOT PAID FOR;
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

6. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Exemption to Casual Taxable Persons supplying handicraft goods from obtaining registration
Casual taxable persons supplying handicraft goods – exemption from registration; Notification No.38/2017 dated – amends notification No.32/2017 dated
Scope enhanced; following new categories of goods added in the earlier list;
Textile (handloom products), Handmade shawls, stoles and scarves ; Chain Switch; Crewel, wicker willow products, Articles made of shola; Toran.
Why Casual Taxable Persons? These are not inter-state supplies; These persons – when going to other states for selling their goods were required to register as casual taxable persons in those states; There being no threshold limit for casual taxable persons, the exemptions is announced. However, conditions of Eway Bill will be impossible to implement- the same should also have been deleted.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

7. Time of Supply for small suppliers having turnover up to Rs. 1.5 crore
Special procedure for taxpayers with an aggregate turnover of less than 1.5 Cr in the preceding financial year or current financial year ( if likely to be less than Rs.1.5 crores)
Notification No. 40/2017 dated
GST to be paid at the time of supply specified in Section 12(2)(1)(a) i.e. at the time of issue of invoice or the last date by which invoice has to be issued in terms of Section 31.
Thus, no GST on advances received by above taxpayers
However, it is applicable ONLY for suppliers of goods. In case of any advances received in respect of supply of services, GST will have to be paid.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

8. Furnishing of Returns by composition dealer – extension of time
Notification 41/2017- Central Tax dated
Time limit for furnishing the return by a composition supplier, in FORM GSTR-4, under section 39(2) of the CGST Act, 2017 read with rule 62 of the CGST Rules, 2017 for the quarter July to September, 2017 extended till the 15th November, 2017.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

9. Furnishing of Returns – OIDAR suppliers
Notification 42/2017-Central Tax dated
The time limit for furnishing the return in FORM GSTR-5A for the month of July, 2017, August, 2017 and September, 2017 by a person supplying OIDAR services from a place outside India to a non-taxable online recipient referred to in Section 14 of the IGST Act, 2017 and Rule 64 of the CGST Rules, 2017,
Extended till the 20th day of November, Earlier the last date for July return was up to 15th September, 2017 ( Notn No. 25/2017-Central Tax)
Therefore, this notification comes into effect, retrospectively, on 15th September, 2017
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

10. Furnishing of Returns by ISD
Notification 43/2017 – Central Tax dated
Extension of time limit for furnishing returns for July/Aug/Sep by Input Service Distributors (ISD)
the time limit for furnishing the return by an Input Service Distributor in FORM GSTR-6 under sub-section (4) of Section 39 of the said Act read with Rule 65 of the Central Goods and Services Tax Rules, 2017 for the months of July, 2017, August, 2017 and September, 2017 extended till the 15th day of November, 2017
Here also the last dates for July and august returns were in September, but the notification is issued prospectively???? Earlier notification is 26/2017-Central Tax
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

11. Manner of claiming credit in special circumstances
Notification 44/2017-Central Tax dated
Due date for filing GST ITC-01 (Section 18(1) of CGST Act, 2017 read with Rule 40(1)(b) of CGST Rules) for declaring the details of stock held immediately preceding the date of registration
The time limit for making a declaration, in FORM GST ITC-01, by the registered persons, who have become eligible during the months of July, 2017, August, 2017 and September, 2017, to the effect that they are eligible to avail the ITC extended till 31st day of October, 2017.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

12. Amendment of CGST Rules, 2017
Notification No. 45/2017-Central Tax dated
Time period for GST ITC-03 extended
GST ITC -03, the form to be filed with in 90 days form the day on which a person commences to pay tax under section 10 (Composition Scheme)
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

13. Amendment of CGST Rules (Contd.)
Invoice cum Bill of Supply may be issued for supplies to unregistered persons, if both taxable as well as exempted supply done
New Rule 46A : Invoice-cum-bill of supply inserted in the CGST Rules
Notwithstanding anything contained in rule 46 or rule 49 or rule 54, where a registered person is supplying taxable as well as exempted goods or services or both to an unregistered person, a single “invoice-cum-bill of supply may be issued for all such supplies.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

14. Amendment of CGST Rules ( Contd)
Rule 54(2)- Tax Invoice by insurer or a banking company or a financial institution, including a non-banking financial company
Consolidated tax invoice at the end of month may be issued
In Rule 54 (2), for the words “tax invoice” the words “consolidated tax invoice” substituted; and after the words “by whatever name called”, the words “for the supply of services made during a month at the end of the month” shall be inserted;
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

15. Amendment in CGST Rules (Contd.)
Notification No. 45/2017-Central Tax dated
Composition Scheme applying in between a Quarter
In Rule 62(1), the following proviso has been inserted, namely:-
Provided that the registered person who opts to pay tax under section 10 with effect from the first day of a month which is not the first month of a quarter shall
furnish the return in FORM GSTR-4 for that period of the quarter for which he has paid tax under section 10 and
shall furnish the returns as applicable to him for the period of the quarter prior to opting to pay tax under section 10.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

16. Amendment in CGST Rules (Contd.)
Amendment in GSTR-1
In GSTR-1, Table 6, one new column for CESS added (earlier it was missing)
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

17. Amendment in CGST Rules
Column for Cess added in GSTR-1A
Here also CESS column added in GSTR-1A
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

18. Amendment in CGST Rules ( Contd.)
Amendment in GSTR-4 ( Composition Scheme)
In FORM GSTR-4, after instruction no.9, the following instruction 10 shall be inserted, namely:-
For the tax periods July, 2017 to September, 2017 and October, 2017 to December, 2017, serial 4A of Table 4 shall not be furnished.
GSTR-4A is the Auto-drafted details for registered person opting for composition levy ; Since timelines for GSTR-1/2/3 have been postponed, GSTR-4A is not possible for these months and therefore the instruction has been inserted
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19. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Cross Empowerment of State Government / UT officers for refund under Section 54 of CGST Act, 2017
Notification 39/2017-Central Tax dated
Officers appointed under the respective SGST, 2017 or the UTGST, 2017, authorized to be the proper officers for the purposes of section 54/ 55 of the said Acts by the Commissioner of the said Acts, shall act as proper officers for the purpose of sanction of refund under section 54/ 55 of the CGST Act read with the rules made thereunder except Rule 96 of the CGST Rules, 2017, in respect of a registered person located in the territorial jurisdiction of the said officers who applies for the sanction of refund to the said officers
Similar provisions in Notification No. 11/2017 –Integrated Tax dated 13th October, 2017
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

20. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Composition Scheme
Order No. 01/2017-Central Tax dated 13th October, 2017
A person suppling any exempt services including services by way of extending deposits, loans or advances in so far as the consideration is represented by way of interest or discount, not be ineligible for the composition scheme
In computing his aggregate turnover in order to determine his eligibility for composition scheme, value of supply the exempt services including services by way of extending deposits, loans or advances shall not be taken into account
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

21. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Composition Scheme
Notification No. 46/2017- Central Tax dated 13th October, 2017
Turnover threshold limit enhanced from Rs.75 lacs to Rs.one crore ( to Rs. 75 lacs from Rs.50 lacs for spl. category states)
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

22. Exemption from Integrated Tax on import of goods
Notification No. 77/2017-Customs: Exemption extended to following imports
Medicines/drugs/vaccines supplied free by United Nations International Children's Emergency Fund (UNICEF), Red Cross or an International Organisation subject to specified conditions.
Import of gold by specified banks and specified Public Sector Units
Bonafide gifts imported by post or air up to CIF value limit of 5000 rupees and exempted from any prohibition in respect of the imports thereof under the FTDR (D & R) Act, 1992
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

23. Exemption from Integrated Tax on import of goods
Notification No. 77/2017-Customs: Exemption to import of Rigs
Rigs and ancillary items imported for oil or gas exploration and production taken on lease by the importer for use after import
Wherever the importer pays the Integrated tax on service of lease under reverse charge
And executes Bond as per the condition No. 102 in Notn No. 50/2017-Customs
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

24. Exemption to Imports by EOUs from Integrated tax and Compensation Cess
Notification No. 78 /2017-Customs amends the Notification No. 52/2003-Customs, dated the 31st March, 2003
Exemption from Integrated Tax and Compensation Cess extended to imports of goods by EOUs
However the exemption is temporary; up to 31st March, 2018.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

25. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
Exemption to imports under AA/EPCG etc from Integrated Tax and Compensation Cess
Notification No. 79/2017 – Customs amends various Notifications making following changes
Holders of Advance Authorisation (AA) / EPCG/ Special AA/ AA for deemed exports/ AA for annual requirements
would not have to pay IGST and compensation Cess etc. on imports.
However the exemption is temporary; up to 31st March, 2018.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

26. Exemption on supply of goods
Notification No. 35/2017-Central Tax (Rate) dated 13th October, 2017 amends Notn No. 2/2017-Central Tax (Rate) dated 28th June, 2017
Duty Free Scrips( HSN- 4907)
GST reduced from 5% to Nil (Exempted)
Supply of goods by Govt Entity to CG, SG, UT, LA against consideration in the form of grants.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

27. Exemption to supply of services
Notification 32-Central Tax(Rate) dated 13th October, 2017 amends Notn No. 12/2017-Central tax (Rate) on exemption of services; Following Services exempted
Supply of services by Govt Entity to CG, SG, UT, LA against consideration in the form of grants
Services provided by a GTA to an unregistered person, including an unregistered casual person
Service by way of access to a road or a bridge on payment of annuity.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

28. Rate revision on supply of goods
Notification No. 34/2017-Central Tax (Rate) amends the Notn No.1/2017-Central Tax (Rate), dated 28th June, 2017; Important rate changes are:
Waste, parings or scrap of plastic, rubber, paper, glass, E-waste
18%/28% to 5%
Sewing thread of manmade filaments; Sewing thread of manmade staple fibres; Synthetic or artificial filament yarns Yarn of manmade staple fibres
18% to 12%
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

29. Leasing of Old Motor Vehicles purchased prior to 1st July, 2017
Notification No. 6/2017- Compensation Cess (Rate) amends the Notification No. 2/2017-Compensation Cess (Rate); Similarly Notn No. 31/2017-Central Rate
Leasing of motor vehicles purchased and leased prior to 1st July 2017 ; Rate of GST shall be
65% of the rate of rate of Central tax, State tax and Cess as applicable on supply of similar goods involving transfer of title in goods.
This is applicable only for three years i.e. up to 1st July, 2020.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

30. Supply of Old Motor Vehicles purchased prior to 1st July, 2017
Notification No. 37/2017-Central Tax (Rate) and parallel notn for Cess and Integrated tax
Sale of motor vehicles purchased prior to 1st July 2017 and on which no ITC taken; Rate of GST shall be
65% of the total rate of Central tax, State tax and Cess as applicable on supply of similar goods involving transfer of title in goods.
The entry applicable only for three years i.e. up to 1st July, 2020
Conditions: Such supplier is registered person and had purchased the Motor Vehicle prior to 1st July, 2017 and has not availed input tax credit of central excise duty, Value Added Tax or any other taxes paid on such vehicles
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

31. Services under reverse charge mechanism
Notification No. 33/2017- Central Tax (Rate) amends the Notn No. 13/2017- Central Tax (Rate), dated the 28th June, 2017 on services under reverse charge mechanism; Following services also brought under RCM
Supply of services by the members of Overseeing Committee to Reserve Bank of India
GST to be paid on reverse charge by the recipient viz. RBI
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

32. Goods under reverse charge mechanism
Notification No. 36 /2017-Central Tax (Rate) amends the Notn No.4/2017- Central Tax (Rate) dated 28th June, 2017 on goods under RCM; Following goods brought under RCM
Used vehicles, seized and confiscated goods, old and used goods, waste and scrap
When sold by Central Government, State Government, Union territory or a local authority
GST to be paid by the recipient.
National Academy of Customs, Indirect Taxes and Narcotics (NACIN)

33. National Academy of Customs, Indirect Taxes and Narcotics (NACIN)
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