GST

Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime

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Ministry of Finance

Effective tax rate on complex, building, flat etc.

08 DEC 2018

It is brought to the notice of buyers of constructed property that there is no GST on sale of complex/ building and ready to move-in flats where sale takes place after issue of completion certificate by the competent authority. GST is applicable on sale of under construction property or ready to move-in flats where completion certificate has not been issued at the time of sale.

Effective rate of tax and credit available to the builders for payment of tax are summarized in the table for pre-GST and GST regime.

Period Output Tax Rate Input Tax Credit details Effective Rate of Tax
Pre- GST Service Tax: 4.5%

VAT: 1% to 5%

(composition scheme)

Central Excise on most of the construction materials: 12.5%

VAT: 12.5 to 14.5%

Entry Tax: Yes

No input tax credit (ITC) of VAT and Central Excise duty paid on inputs was available to the builder for payment of output tax, hence it got embedded in the value of properties. Considering that goods constitute approximately 45% of the value, embedded ITC was approximately 10- 12%. Effective pre-GST tax incidence: 15- 18%
GST Affordable housing segment: 8%,
Other segment: 12% after 1/3rd abatement of value of land
Major construction materials, capital goods and input services used for construction of flats, houses, etc. attract GST of 18% or more. ITC available and weighted average of ITC incidence is approximately 8 to10%. Effective GST incidence, for affordable segment and for other segment has not increased as compared to pre- GST regime.

Housing projects in the affordable segment such as Jawaharlal Nehru National Urban Renewal Mission, Rajiv Awas Yojana, Pradhan Mantri Awas Yojana or any other housing scheme of State Government etc., attract GST of 8%. For such projects, after offsetting input tax credit, the builder or developer in most cases will not be required to pay GST in cash as the builder would have enough ITC in his books of account to pay the output GST.

For projects other than affordable segment, it is expected that the cost of the complex/ buildings/ flats would not have gone up due to implementation of GST. Builders are also required to pass on the benefits of lower tax burden to the buyers of property by way of reduced prices/ installments, where effective tax rate has been down.

PIB

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Be the first to comment - What do you think?  Posted by admin - December 8, 2018 at 6:48 pm

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Extension of due dates for filing GST returns

Ministry of Finance
Extension of due dates for filing GST returns

28 NOV 2018

In view of the disturbances caused to daily life by Cyclone Titli in the district of Srikakulam, Andhra Pradesh, and by Cyclone Gaza in eleven districts of Tamil Nadu viz., Cuddalore, Thiruvarur, Puddukottai, Dindigul, Nagapatinam, Theni, Thanjavur, Sivagangai, Tiruchirappalli, Karur and Ramanathapuram, the competent authority has decided to extend the due dates for filing various GST returns as detailed below:

Sl. No. Return/Form Extended due date Taxpayers eligible for extension
1 FORM GSTR-3B for the months of September and October, 2018 30th November, 2018 Taxpayers whose principal place of business isin the district of Srikakulam in Andhra Pradesh
2 FORM GSTR-3Bfor the month of October, 2018 20th December, 2018 Taxpayers whose principal place of business is in the 11 specified districts of Tamil Nadu
3 FORM GSTR-1 for the months of September and October, 2018 30th November, 2018 Taxpayers having aggregate turnover of more than 1.5 crore rupees and whose principal place of businessis in the district of Srikakulam in Andhra Pradesh
4 FORM GSTR-1 for the month ofOctober, 2018 20th December, 2018 Taxpayers having aggregateturnover of more than 1.5 crore rupees and whose principalplace of business is in the eleven specified districts of Tamil Nadu
5 FORM GSTR-1 for the quarter July-September, 2018 30th November, 2018 Taxpayers having aggregate turnover of upto 1.5 crore rupees and whose principal place of business is in the district of Srikakulam in Andhra Pradesh
6 FORM GSTR-4 for the quarter July to September, 2018 30th November, 2018 Taxpayers whose principal place of business isin the district of Srikakulam in Andhra Pradesh
7 FORM GSTR-7 for the months October to December, 2018 31st January, 2019 All taxpayers

2. The relevant notifications for the same will be issued shortly.

PIB

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No let-up in sanction of GST Refunds

Ministry of Finance

No let-up in sanction of GST Refunds

08 NOV 2018

There are concerns being raised about growing pendency of GST Refunds. Exporters arereassured that there is no le-tup in the sanction of GST refunds. The disposal rate is consistently improving month-on-month. As on 31st October, 2018, total GST refunds to the tune of Rs 82,775 crore have been disposed by Central Board of Indirect Taxes and Customs (CBIC) and the State authorities out of the total refund claims of Rs 88,175 crore received so far. Thus, the disposal rate of 93.8 % has been achieved as on 31.10.2018. The pending GST refund claims amounting to Rs. 5,400crore are being expeditiously processed so as to provide relief to eligible exporters. Refund claims without any deficiency are being cleared expeditiously.

In case of IGST refunds, about 93.27 % (Rs 42,935 crore) of the total IGST refund claims (Rs. 46,032 crore) transmitted to Customs from GSTN as on 31st October, 2018 have already been disposed. The remaining claims amounting to Rs.3,096crore are held-up on account of various deficiencies which have been communicated to exporters for remedial action.

In the case of RFD-01A (ITC Refund) claims, out of the total refund claims of Rs. 42,145 crorethe pendency as on 31st October, 2018 is Rs 159 Crore with the Centre and Rs 2,146 crore with the States. Provisional/Final Order has been issued in case of refunds amounting to Rs. 34,602 Crore. In claims amounting to Rs. 5,239Crore, deficiency memos have been issued by respective GST authorities.

Efforts are being made continuously to clear all the pending refund claims, where ever requisite information is provided and found eligible. Co-operation of the exporter community is solicited to ensure that they respond to the deficiency memos and errors communicated by Centre and State GST as well as Customs Authorities and also exercise due diligence while filing GSTR 1 and GSTR 3B returns as well as Shipping Bills.

PIB

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GST: Goods and Services Tax Council – Journey so far

 Ministry of Finance
Goods and Services Tax Council – Journey so far;

GST Council met 30 times, took 918 decisions since its Constitution;

96% of decisions already been implemented through 294 Notifications

28 OCT 2018

Till date, the Goods and Services Tax ( GST ) Council  has taken 918 decisions related to GST laws, rules, rates, compensation and taxation threshold etc. More than 96% of the decisions have already been implemented through 294 Notifications issued by the Central Government and the remaining are under various stages of implementation. Almost equal number of corresponding SGST Notifications have been issued by each State.

The GST Council Members under the Chairpersonship of  the Union Finance Minister have spent long hours discussing the broad contours as well as the nitty gritty of the new GST regime in a harmonious and collaborative spirit. Till now, 30 GST Council Meetings have taken place. Detailed Agenda Notes were prepared before every GST Council Meeting and discussed in the preparatory Officer’s Meeting to enable the Council Members to fully appreciate the issues under consideration. The Detailed Agenda Notes for the 30 GST Council Meetings ran into 4730 pages. The discussions in the GST Council were very detailed, reflecting the collective wisdom of the Council and this has been captured exhaustively in the Minutes of the 30 Council Meetings running into 1394 pages.

The GST Council was constituted on 15th September 2016 under Article 279A of the Constitution. It consists of the Union Finance Minister (Chairperson), Union Minister of State in charge of the Revenue or Finance and the Minister in charge of Finance or Taxation or any other Minister nominated by each State Government. Union Revenue Secretary is the ex-officio Secretary to the GST Council. The working of GST Council has ushered in a New Phase of Cooperative Federalism where the Central and the State Governments work together to take collective decisions on all issues relating to Indirect Tax regime of the country.

PIB

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GST Revenue Collections for the Financial Year 2017-18

Ministry of Finance

GST Revenue Collections for the Financial Year 2017-18

Total Revenue of Rs. 7.19 lakh crore collected under GST in the period between August 2017 and March 2018

27 APR 2018

During 2017-18, total revenue collected under GST in the period between August 2017 and March 2018 has been Rs. 7.19 lakh crore. This includes Rs. 1.19 lakh crore of CGST, Rs. 1.72 lakh crore of SGST, Rs. 3.66 lakh crore of IGST (including Rs. 1.73 lakh crore on imports) and Rs. 62,021 crore of cess (including Rs. 5702 crore on imports). For this eight months, the average monthly collection has been Rs. 89,885 crore.

While the tax on domestic supplies in a month is collected through the process of returns and gets collected in the next month, IGST and cess on imports gets collected in the same month. Therefore, during the current year, GST on domestic supplies has been collected only in eight months from August 2017 to March 2018, IGST and cess on imports has been collected for nine months, from July 2017 to March 2018. Including the collection of July 2017, the total GST collection during the financial year 2017-18 stands provisionally at Rs. 7.41 lakh crore.

Revenue of the States

The SGST collection during the year, including the settlement of IGST has been Rs. 2.91 lakh crore and the total compensation released to the States for a period of eight months during the last financial year was Rs. 41,147 crore to ensure that the revenue of the States is protected at the level of 14% over the base year tax collection in 2015-16. The revenue gap of each State is coming down over last eight months. The average revenue gap of all states for last year is around 17%.

Return Filing During the year

There has been a progressive improvement in the compliance level observed during the course of the year. Following table shows the percentage of returns filed as on due date and the cumulative level of compliance.

Return Period Required to file Till due date Cumulative
Returns % Returns %
July ’17 6647581 3834877 57.69% 6388549 96.10%
Aug ’17 7370102 2725183 36.98% 6851732 92.97%
Sep ’17 7823806 3934256 50.29% 7109143 90.87%
Oct ’17 7721075 4368711 56.58% 6777440 87.78%
Nov ’17 7957204 4913065 61.74% 6765603 85.02%
Dec ’17 8122425 5426278 66.81% 6747887 83.08%
Jan ’18 8322611 5394018 64.81% 6694387 80.44%
Feb ’18 8527127 5451004 63.93% 6562362 76.96%
Mar ’18 8715163 5458728 62.63% 5630683 64.61%

As may be seen, the compliance level as on the due date has steadily increased and, by the end of the financial year, has reached to an average of 65% from around 55-57% observed during initial months. The cumulative compliance levels (percentage of returns filed till date) for initial months has crossed 90% and for July, 2018, has reached 96%.

There are State-wise variations in the compliance level observed till due date. However, including delayed filings, the State-wise compliance levels converge over a period of time.

PIB

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Final Monthly collection figures of GST

Ministry of Finance

Final Monthly collection figures of GST

02 APR 2018

The revenue collection figures under GST including CGST, SGST, IGST and cess for the period July 2017 – February 2018 paid in the period July 2017 – March 2018 is as follows:

Figures in Rs. Crores)

Month GST Collection
August 93,590
September 93,029
October 95,132
November 85,931
December 83,716
January 88,929
February 88,047
March 89,264
Total 7,17,638

Besides the above Rs. 27,811 crores were collected as IGST and cess on imports in the month of March. Every month the Department of Revenue released figures for revenue collection under GST which were released usually the day next to the day when settlement of IGST was done. The figures were normally released between 24th-26th of the month. The above figures are month end figures for collection under GST.

PIB

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Recommendations made by the GST Council for the Housing Sector to promote Affordable Housing for the masses come into force

Ministry of Finance

Recommendations made by the GST Council for the Housing Sector to promote Affordable Housing for the masses come into force;

Concessional Rate of GST of 12% extended to construction of houses constructed/ acquired under the Credit Linked Subsidy Scheme for EWS, LIG, MIG sections

Posted On: 07 FEB 2018 1:45PM by PIB Delhi

In its 25th Meeting held on 18th January, 2018, the GST Council had made several important recommendations for the Housing Sector which have come into force with effect from 25th January, 2018. The recommendations are expected to promote affordable housing for the masses in the country.

One of the important recommendations made is to extend the concessional rate of GST of 12% (effective rate of 8% after deducting one third of the amount charged for the house, flat etc. towards the cost of land or undivided share of land, as the case may be) in housing sector to construction of houses constructed/ acquired under the Credit Linked Subsidy Scheme (CLSS) for Economically Weaker Sections (EWS) / Lower Income Group (LIG) / Middle Income Group-1 (MlG-1) / Middle Income Group-2 (MlG-2) under the Housing for All (Urban) Mission/Pradhan Mantri AwasYojana (Urban).

Credit Linked Subsidy Scheme (CLSS) is one of the components of Housing for All (Urban) Mission/Pradhan Mantri Awas Yojana (PMAY) (Urban). Under this component, subsidy would be provided on home loans taken by eligible urban poor (EWS/LIG/ MIG-I/ MIG-II) for acquisition and construction of house. Credit linked subsidy would also be available for housing loans availed for new construction and for addition of rooms, kitchen, toilet etc, to existing dwellings as incremental housing. The carpet area of houses constructed under this component of the mission would be up to 30 square meters for EWSA, 60 Square Meters for LIG, 120 sqm for MIG I and 150 Sqm for MIG II. The benefit of Credit Linked Subsidy Scheme may be taken by the Economical Weaker sections or Low/Middle Income Groups for purchase of houses under any project. The maximum annual income for eligibility of beneficiaries under the scheme can be up to Rs.18 lakhs. It covers a very large section of population which aspires to own a home.

So far, houses acquired under CLSS attracted effective GST rate of 18% (effective GST rate of 12% after deducting value of land). The concessional rate of 12% was applicable only on houses constructed under the other three components of the Housing for All (Urban) Mission/Pradhan Mantri AwasYojana (Urban), namely (i) ln-situ redevelopment of existing slums using land as a resource component; (ii) Affordable Housing in partnership and (iii) Beneficiary led individual house construction/enhancement. The exemption has now been recommended for houses acquired under the CLSS component also. Therefore, the buyers would be entitled to interest subsidy under the Scheme as well to a lower concessional rate of GST of 8% (effective rate after deducting value of land).

The GST Council has also recommended that the benefit of concessional rate of GST of 12% (effective GST rate of 8% after deducting value of land) applicable to houses supplied to existing slum dwellers under the in-situ redevelopment of existing slums using land as a resource component of PMAY may be extended to houses purchased by persons other than existing slum dwellers also. This would make the in-situ redevelopment of existing slums using land as a resource component of PMAY more attractive to builders as well as buyers.

The third recommendation of the Council is to include houses constructed for ‘Economically Weaker Section (EWS)’ under the Affordable Housing in partnership (PMAY) under the concessional rate of GST of 8% (effective rate after deducting value of land). This will support construction of houses up to 30 sqm carpet area.

The Fourth Recommendation of the Council is to extend the concessional rate of 12% to services by way of construction of low cost houses up to a carpet area of 60 sqm in a housing project which has been given infrastructure status under notification No. 13/06/2009 dated 30th March, 2009. The said notification of Department of Economic Affairs provides infrastructure status to Affordable Housing.

Affordable Housing has been defined in the said notification as a housing project using at least 50% of the FAR/FSI for dwelling units with carpet area of not more than 60 sqm. The recommendation of the Council would extend the concessional rate of 8% GST (after deducting value of land) to construction of flats/ houses of less than 60 sqm in projects other than the projects covered by any scheme of the Central or State Government also.

In addition to the above, in order to provide a fillip to the housing and construction sector, GST Council has decided to give exemption to leasing of land by Government to Governmental Authority or Government Entity. [Government Entity is defined to mean an authority or board or any other body including a society, trust, corporation, (i) set-up by an Act of Parliament or State Legislature; or (ii) established by any Government, with 90% or more participation by way of equity or control, to carry out any function entrusted by the Central Government, State Government, UT or a local authority].

Also, any sale/lease/sub-lease of land as a part of the composite sale of flats has also been exempted from GST. Therefore, in effect, the Government does not levy GST on supply of land whether by way of sale or lease or sub-lease to the buyer of flats and in fact, gives a deduction on account of the value of land included in the value of flats and only the value of flat is subjected to GST.

It may be recalled that all inputs used in and capital goods deployed for construction of flats, houses, etc attract GST of 18% or 28%. As against this, most of the housing projects in the affordable segment in the country would now attract GST of 8% (after deducting value of land). As a result, the builder or developer will not be required to pay GST on the construction service of flats etc. in cash but would have enough ITC (input tax credits) in his books to pay the output GST, in which case, he should not recover any GST payable on the flats from the buyers. He can recover GST from the buyers of flats only if he recalibrates the cost of the flat after factoring in the full ITC available in the GST regime and reduces the ex-GST price of flats.

The builders/developers are expected to follow the principles laid down under Section 171 of the GST Act scrupulously. The above changes have come into force with effect from 25 January 2018.

PIB

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GST Council recommends relief in GST on Circus, Dance and Theatrical Performances

Ministry of Finance

GST Council recommends relief in GST on Circus, Dance and Theatrical Performances

Threshold Exemption under GST for admission to such cultural and sports events in the country increased from Rs. 250 to Rs. 500 per person.

7 FEB 2018 1:48PM

In its Meeting held on 18th January, 2018, the GST Council has recommended that for the purpose of GST exemption, the threshold price limit of Admission Ticket for circus, dance,theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, and recognized sporting events may be increased from Rs. 250 per person to Rs.500 per person. The Council has further recommended that admission to planetarium may also been given the benefit of this threshold exemption up to Rs.500 per person.

The Notifications giving effect to the recommendations of the Council have been issued on 25th January, 2018. Accordingly, from 25th January 2018, the Admission Ticket to circus, dance, theatrical performances including drama or dance, award functions, pageants, concerts, musical performances, recognized sporting events and planetarium up to Rs.500 per person have been exempted from GST. This measure is expected to promote such cultural and sports events in the country.

PIB

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Applicability of Goods and Service tax (GST) on Static Catering Services on IR

Applicability of Goods and Service tax (GST) on Static Catering Services on IR

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No. 2012/TG.III/631/2

New Delhi Dated 01.12.2017

The General Managers
All Indian Railways

The CMD/IRCTC
New Delhi

CMD/KRCL,
Navi Mumbai

(Commercial Circular No. 79 of 2017)

Sub: Applicability of Goods and Service tax (GST) on Static Catering Services on IR.

Ref: (i) Commercial Circular No. 78 of 2012 dated 21.12.2012
(ii) Commercial Circular No. 44 of 2017 dated 29.06.2017
(iii) Commercial Circular No. 48 of 2017 dated 30.06.2017
(iv) Board’s letter No. 2016/AC-II/01/Misc./GST (RBS No. 164/20117) dtd 20.11.2017
(v) Board’s letter no. 2017/TG-III/631/6 dated 18/09/2017.

Ministry of Finance (Department of Revenue) vide notification No. 11/2017 – Central Tax(Rate) dated 28.06.2017 had issued GST Rate for supply of food and beverage services. Further, vide Notification no. 46/2017-Centrl Tax (Rate) dated 14.11.2017, the aforesaid notification has been amended. The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railway has been examined in consultaion of Finance Commercial Dte. of Railway Board and accordingly, following are advised:-

1. The chargeable GST on catering services in state in catering units / parliament canteen is @ 5% with no Input Tax Credit (ITC).

2. The above GST on catering charges through Static units is applicable w.e.f. 15.11.2017.

3. The rates notified vide Commercial Circular No. 78 of 2012 will remain unchanged after applicability of GST but are now inclusive of GST @ 5% for static catering units.

This issues with the concurrence of Finance Dte. of Railway Board.

Please acknowledge receipt of this letter.

sd/-
(Smita Rawat)
Executive Director (T&C)
Railway Board

Authority: www.indianrailways.gov.in

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Government to replace GST ordinance with bill

Government to replace GST ordinance with bill

GST-Goods-and-Service-Tax

The Cabinet today approved replacing the Goods and Service Tax (Compensation to States) Ordinance by a bill, sources said.

The GST (Compensation to States) Act 2017 aims to provide for compensation to the states for the loss of revenue arising on account of implementation of Goods and Service Tax Act, they said.

It provides for imposition of compensation cess on intra-state/ inter-state supplies of goods and services.

The GST Council in its 20th meeting held in August had recommended an increase of 10 per cent to 25 per cent in the maximum rate on certain type of motor vehicles.

The Ordinance was promulgated on September 2, thus raising the maximum rates.

Article 123 of the Constitution mandates that the ordinance be approved by the Parliament within six weeks of reconvening.

Accordingly, the sources added the finance ministry had sought Cabinet nod for the replacement of the ordinance by the Goods and Service Tax (Compensation to States) Bill, 2017.

The government has listed the bill for introduction in its Parliament business agenda for the next week.

PTI

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GST: Clarification about Transition Credit

Clarification about Transition Credit

There are lot of speculations in the media about the credit of Rs. 65,000 crore claimed by taxpayers in respect of Central Excise and Service Tax in the pre-GST period. Some people are under the impression that because of Rs. 65,000 crore claimed as transition credit, the income of Government this month has plummeted.

Firstly, Rs. 65,000 crore is the credit claimed by the taxpayers in the TRANS 1 form as their balance of credit. It does not mean that they would have used all of this credit for payment of their output tax liability for the month of July 2017.

It may be clarified that this is far from the truth. Secondly, it may be clarified that an amount of Rs. 95,000 crore, which was received in the month of August 2017 for GST, is the amount actually paid in cash other than availing credit.

Thirdly, this figure of transition credit claimed is also not incredibly high, since Rs.1.27 lakh crore of credit of Central Excise and Service Tax was lying as closing balance as on 30th June, 2017 as per department’s record. This includes credit in Central Excise as well as Service Tax. Of course, some of these credits may not be admissible under GST regime, for example the credits, which are blocked under Section 17 (5) of CGST Act or which are not covered under the definition of GST. Also, some of the credits, which are claimed in TRANS 1 form may be under litigation and, therefore, it may not be available to the assesse to carry forward or utilisation. It is from this angle that CBEC is examining the transition credits, which are claimed by the assessees in TRANS I form in certain cases.

It is possible that some assessees would have committed mistake in filing TRANS 1 form of admissible credit. It has, therefore, been decided to provide facility for revision of TRANS 1 by the GST Council. This facility would be available by middle of October 2017 and assessees are requested to revise their TRANS 1 form before 31st October, 2017, so that they themselves can remove the error.

PIB

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GST: Cabinet approves promulgation of the Goods and Services Tax (Compensation to States) Ordinance, 2017

GST: Cabinet approves promulgation of the Goods and Services Tax (Compensation to States) Ordinance, 2017

The Union Cabinet chaired by Prime Minister Shri Narendra Modi has given its approval to the proposal of the Finance Ministry to promulgate an ordinance to suitably amend the Goods and Services Tax (Compensation to States) Act, 2017.

The approval would allow to increase the maximum rate at which the Compensation Cess can be levied from 15% to 25% on:

a) motor vehicles for transport of not more than thirteen persons, including the driver [falling under sub-headings 870210, 8702 20, 8702 30 or 8702 90]; and

b) motor vehicles falling under headings 8703.

The GST Council, in its meeting held in August 2017, taking into consideration the fact that post introduction of GST, the total incidence on motor vehicles [GST+ Compensation Cess] has come down vis-a-vis pre-GST total tax, incidence, and had recommended increase in the maximum rate at which Compensation Cess can be levied on motor vehicles falling under headings 8702 and 8703 from 15% to 25%.

The issue regarding the increase in effective rate of Compensation Cess on motor vehicles will be examined by the GST Council in due course.

PIB

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GST Impact on Automobile Sale to CSD Customers

GST Impact on Automobile Sale to CSD Customers

Sale Automobiles at CSD

Consequent to implementation of GST the impact on sale of vehicles to CSD customers is as follows :

  • Rates of Four Wheelers to CSD eligible customers will be CONSISTENT across the country. A slight variation may occur on account of varying freight and transit insurance charges of the companies.
  • Across India the customers will benefit in terms of price differential.
    Eligible CSD Customers shall only be levied 50% of GST and will NOT be involved in claiming refunds
  • The dealership across the country for all auto manufacturers have been expanded. All rates will be finalized by 31 Aug 2017

Be the first to comment - What do you think?  Posted by admin - August 8, 2017 at 1:52 pm

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GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

GST Council Recommends Increase in Maximum Ceiling of Cess Leviable on Motor Vehicles Falling Under Headings 8702 and 8703 to 25% Instead of Present 15%

The GST Council considered the issue of cess leviable on motor vehicles in its 20th meeting held on the 5th of August 2017 and recommended that Central Government may move legislative amendments required for increase the maximum ceiling of cess leviable on motor vehicles falling under headings 8702 and 8703 including SUVs, to 25% instead of present 15% . However, the decision on when to raise the actual cess leviable on the same will be taken by the GST Council in due course.

It was noted that after introduction of GST, the total tax incidence on motor vehicles [GST + Compensation Cess] has come down vis-a-vis the total tax incidence in pre-GST regime. The Schedule to the Goods and Service Tax (GST) (Compensation to State) Act 2017, specifies the maximum rate at which Goods and Service Tax Compensation Cess may be collected. In respect of motor vehicles, the maximum rate at which Goods and Service Tax Compensation Cess may be collected is 15%.

PIB

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Publishing in Web page of Department of Posts the New rates of Tariff on Introduction of GST

GST rate for Speed Post, Express Parcel Post and Agency Services (WUMT) is at the rate of 18% with effect from 1st July 2017.

Department of Posts the New rates of Tariff on Introduction of GST

Government of India
Ministry of Communications
Department of Post, Dak Bhawan
New Delhi-110001

No.PA / Book-I/6-7/GST /2016-1793

Dated: 24.07.2017

To,

The General Manager, CEPT,
Nazarbad,
Mysore, 570010,
Karnataka Circle.

Sub: – Publishing in Web page of Department of Posts the New rates of Tariff on Introduction of GST-reg.

On introduction of GST with effect from 1st July 2017, the following information is required to be published in Web page of India post. Necessary action may be taken for publishing the information in Web page of India Post.

In respect of PLI/ RPM products with effect from 1st July 2017, First Year Premium @ 4.50% and Subsequent Year premium (Second Year onwards) @ 2.25%”.

2. The Full fledged Call Centre (1924) in operation in Dak Bhawan and the same has been provided with the FAQs and suggested answers on GST. The Services of the Call Centre (1924) may also be used for GST queries by the public.

Gp.Capt. Anil Kumar Gupta
Director (Accounts)

 

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CLARIFICATION ON ISSUED ‘SOPs’ TO ALL COMPANIES SUPPLYING GOODS, CARS, TWO WHEELERS IN IMPLEMENTATION OF GST

CSD: Clarification on issued SOPs to all companies supplying Goods, Cars, Two Wheelers

GOVERNMENT OF INDIA
MINISTRY OF DEFENCE
CANTEEN STORES DEPARTMENT

DELHI, 119, M.K. ROAD,
MUMBAI – 400 020

Website: www.csdinida.com
Email: dgmfa@csdindia.com

Fax: 022-2208 3324
Tel: 022-2208 3325

Ref No.6/F&A/C&C/630

26 July 2017

All the Companies (Supplying Goods, Cars, Two Wheelers and etc., to CSD)
All CSD Depots

CLARIFICATION ON ISSUED ‘SOPs’ TO ALL COMPANIES SUPPLYING GOODS, CARS, TWO WHEELERS IN IMPLEMENTATION OF GST

1. Please refer this office letter No.6/F&A/C&C/556 dated 20 July 2017.

2. It is once again clarified that only 50% of GST rates will be charged to URCs and authorized customers on purchase of other than AFD items and AFD items respectively. Though 50% refund mechanism is time consuming, CSD will take the responsibility of getting the same without charging URCs and end customers. This initiative has been taken by CSD to avoid timelags of benefit of 50% of GST rate to the authorized customers of URCs. However, cess will be levied totally in case of aerated drinks (Pepsi, Coco-cola etc) and cars at the applicable rates since no exemption has been granted towards cess.

3. All the Depot Managers are to educate the URCs and the end customers in case of AFD purchases on the above issue.

sd/-
(R.Purandar)
Wg Cdr
DGM(F&A)

Authority: www.csdindia.gov.in

Be the first to comment - What do you think?  Posted by admin - July 31, 2017 at 11:43 am

Categories: CSD, GST   Tags: , , ,

FREQUENTLY ASKED QUESTIONS IMPLEMENTATION OF GST

CSD : FAQ on Implementation of GST

FREQUENTLY ASKED QUESTIONS IMPLEMENTATION OF GST

ISSUES CONCERNING DEPOTS

Q. What will be the format of Purchase Orders in GST Regime?

A. Purchase orders in the existing VAT regime will continue after removing the columns such as VAT columns VAT, CST etc and by adding the following fields :-

(a) GSTN of respective depot

(b) GST rate applicable for the index.

(c) HSN Code for each index etc.,

Q. To whom to approach for obtaining GSTIN of suppliers, HSN Code & GST rate for each index?

A. Stores Branches have been collecting the GSTIN details of each Company and their Distribution Centres, HSN Code and GST rate for each index of all the Companies. The data will be shared in

due course of time.

Q. What is going to be the Unique Identification Number (UIN) of CSD for refund mechanism?

A. The clarification in this regard is awaited from Ministry of Finance. Applicability of UIN for obtaining 50% GST refund will be clarified at the earliest.

Q. Will 50% exemption of GST rates apply on sale of non CSD items at URC?

A. Ministry of Finance vide Notification No 06/2017 & 07/2017 both dated 28 June 2017 has exempted sale / supply of goods by URCs to end customers. No URC is entitled to sell non CSD items in the same premises including INCS. Hence, non CSD items sold by any URCs to end customers are not eligible for exemption of GST rates extended by Govt of India.

Q. What will be the format of Form 2 and Return Form 2?

A. These formats under the VAT regime should continue in the GST regime after removing fields such as VAT, CST Octroi etc and by adding the following fields :-

(a) HSN code by each index

(b) GST rate of each index

(c) GSTN of supplier as well as CSD depot and etc.

Q. Are Debit Note and Credit Note raised on companies required to be uploaded on GST network?

A. The depots will raise the debit notes and credit notes against the Companies towards short supply of goods, damaged goods and life expired goods which will be further uploaded to GST network clearly quoting the corresponding purchase invoice details. However, the debit notes and credit notes for non-supply, late supply, part supply, non-extension on CPS etc are not to be uploaded to GST network since these are raised towards the penalties and not related to the quantum of goods supplied.

Q. Change of HSN Code and GST rate?

A. HSN Code and GST rate is being mentioned in all circulars sent to suppliers with copy to all depots. For any changes/revision from time to time depots should maintain proper record and update regularly on receipt of circulars from HO.

Q. What is to be done in case of difference between GSTIN of firm circulated by HO and as annotated on invoice?

A. Though HO is complying data for GSTIN of each firm and will be shared later on, the correct GSTIN data will be available on bills received from firms and same data be complied by each depot depending upon its source of supply and regular checked/updated for each bill so received so that there is no mismatch in returns.

Q. Is sale of stores to URC located outside State will attract CST in GST Regime?

A. CST charged in VAT regime is subsumed in GST. Hence, interstate sale made by CSD Depots to URCs or any inter Depot transfer will not attract CST. The sales to URCs by CSD Depots are outside the scopes of GST. Hence, CSD Depots have to sale URCs situated within the state or outside the State at whole sale rates issued by F&A Branch. However, liquor is outside the purview of GST, hence sale of liquor made to interstate URCs will be loaded with CST.

Q. Is separate Notifications by State Govt towards SGST is required?

A. A letter duly signed by GM (CSD) addressed to State Govt. will be forwarded for passing of Notification by State Govt. for extending exemption of 50% SGST. Depots are to liaise with concerned authorities for issue of notification in this regard.

Q. What is the mechanism for filing of GST returns?

A. GST returns to be filed by depots can be uploaded to GST network through excel files. Hence, all the depots to record their purchases and sales meticulously in the existing automated environment viz ICSDS Phase-I, Fox Pro etc., and to prepare excel files at the end of each month and file the following returns through their respective Chartered Accountants (CAs).

GSTR-I

(Clearly showing sales to URCs as business to customers)

GSTR-2

GSTR-3

Q. Is filing of GST returns through Chartered Accountants mandatory?

A. Filing of GST Returns through Chartered Accountants is not mandatory. Depots can file all the GST Returns after preparing the same in Excel File. However, due to limitation of expertise at Depots and new system related to GST, it is advisable to file GST Returns through Chartered Accountants. This procedure will be akin to the procedure followed in the VAT regime. The Competent Authority has stopped hiring of Tax Consultants/Advocates who are not a qualified Chartered Accountant, as defined in Companies Act & CA Act.

Q. Is 50% exemption of GST applicable to CSD Staff at Depots?

A. 50% of GST rates exemption is extended to all the supplies by CSD to its authorized customers and to the URCs as per the Notification No. 07/2017 dated 28 June 2017 issued by Ministry of Finance. CSD Staff are authorized customers to purchase goods at CSD Depots as per existing procedure. Hence, there should not be any doubt on eligibility of 50% exemption of GST rates to the sales made to CSD Staff at depots.

Q. Is 50% exemption of GST applicable for Defence Civilians for purchase of AFD-I items like TV, Refrigerator, Two Wheelers and Four Wheelers?

A. 50% GST rate exemption has been extended to all the authorized customers vide Notification No. 07/2017 dated 28 June 2017. Hence all the authorized customers who purchase AFD-I items like TV, Refrigerator, Two Wheelers and Four Wheelers etc. including Defence Civilians will be authorized for 50% exemption in GST rates. Hence, rates applicable to Armed Forces Personnel will be equally applicable to all eligible authorized customers.

Q. Is QD to be calculated without 50% of GST rates inclusive in selling prices?

A. 50% of GST will be the cost to CSD after filing/accounting the exemption operation of 50% GST rate. Hence, it becomes cost for CSD and not any tax element. Hence, it should be considered for computation of QD. However, the same is being sent for clarification to CDA (CSD). After receipt of clarification, a separate instruction will be issued to all the Depots.

Q. What is billing mechanism for AFD-I items in GST regime?

A. AFD-I suppliers are to bill to the respective Depots by adding corresponding GST rate (100%). CSD Depot will make payment towards AFD-I items supplied by the companies including 100% GST amount. Further, Depots have to claim refund of 50% of GST rate by filing necessary GST Returns.

Q. Which account is to be used for GST refund purpose?

A. “Main Account” of Depot will be used for the purpose of GST Refund.

Q. Can HSN Code be same for two or more than two items?

A. HSN Code can be same for similar category of items.

Q. How to resolve different HSN Code intimated by Store Branch Circulars and HSN Code mentioned in the suppliers bill?

A. Different HSN Code as intimated by circulars issued by Store Branches and as mentioned in suppliers Bill can be resolved by referring to concerned Store Branch directly. However, HSN Code with dot in between as happened in case of HUL (3401.11.90) should be accepted since it is different way of presentation of HSN Code.

Q. Should HSN Code with 4 digit to be accepted?

A. As per notification No. 12/2017 dated 28 June 2017 issued by Ministry of Finance, a company with annual turnover in the preceding Financial Year of more than one crore fifty lakhs and up to 5 crores shall mention first 2 digits of HSN Code and annual turnover of more than 05 crores shall mention first 4 digits of HSN Code. Thus, HSN code with first 4 digits can also be accepted though the Store Branch circulars convey 8 digits.

Q. Can firm raise Debit/Credit Notes on CSD?

A. Yes. The firms can raise Debit/Credit Notes on CSD. Debit/Credit Notes raised by the firm will be on account of correcting errors in invoice amount due to factors such as short/excess supply, wrong pricing etc. Such Debit/Credit Notes will be part of GST returns filing in GSTR-I uploaded by firms.

Q. Can one Invoice contain items having different GST rates?

A. An invoice can contain items having different GST rates say 5%, 12%, 18% and 28%. An invoice should not be rejected on the grounds that items falling under different GST rates have been included in one invoice. However, companies have been advised to segregate the supplies to feature each category of GST rate at one place for easy accounting at Depots vide letter No. 6/F&A/C&C/GST/6335 dated 27 July 2017.

Q. Rejection of supplies from companies due to mismatch of invoice formats from the format issued by F&A Branch vide letter No.6/F&A/C&C/419 dated 16 June 2017

A. Complaints have been received from many companies stating that Depots are refusing delivery of goods against the orders on the pretext that invoice format are not matching with format circulated by F&A Branch vide above quoted letter. In this regard it is once again clarified that invoice format circulated by this office was “PURELY ADVISORY IN NATURE” covering small scale sole proprietorship to HUL. Hence, if the invoice is meeting basic requirements of GST law such as GSTIN, GST rate, CGST, SGST, IGST, and etc., all the depots are to accept the goods.

ISSUES CONCERNING SUPPLIERS

Q. What is going to be the Unique Identification Number (UIN) of CSD for refund mechanism?

A. The clarification in this regard is awaited from Ministry of Finance. Applicability of UIN for obtaining 50% GST refund will be clarified at the earliest.

Q. Are Debit Note and Credit Note raised on companies required to be uploaded on GST network?

A. The depots will raise the debit notes and credit notes against the Companies towards short supply of goods, damaged goods and life expired goods which will be further uploaded to GST network clearly quoting the corresponding purchase invoice details. However, the debit notes and credit notes for non-supply, late supply, part supply, non-extension on CPS etc are not to be uploaded to GST network since these are raised towards the penalties and not related to the quantum of goods supplied.

Q. What is to be done in case of difference between GSTIN of firm circulated by HO and as annotated on invoice?

A. Though HO is complying data for GSTIN of each firm and will be shared later on, the correct GSTIN data will be available on bills received from firms and same data be complied by each depot depending upon its source of supply and regular checked/updated for each bill so received so that there is no mismatch in returns.

Q. What is billing mechanism for AFD-I items in GST regime?

A. AFD-I suppliers are to bill to the respective Depots by adding corresponding GST rate (100%). CSD Depot will make payment towards AFD-I items supplied by the companies including 100% GST amount. Further, Depots have to claim refund of 50% of GST rate by filing necessary GST Returns.

Q. Should HSN Code with 4 digit to be accepted?

A. As per notification No. 12/2017 dated 28 June 2017 issued by Ministry of Finance, a company with annual turnover in the preceding Financial Year of more than one crore fifty lakhs and up to 5 crores shall mention first 2 digits of HSN Code and annual turnover of more than 05 crores shall mention first 4 digits of HSN Code. Thus, HSN code with first 4 digits can also be accepted though the Store Branch circulars convey 8 digits.

Q. Can firm raise Debit/Credit Notes on CSD?

A. Yes. The firms can raise Debit/Credit Notes on CSD. Debit/Credit Notes raised by the firm will be on account of correcting errors in invoice amount due to factors such as short/excess supply,

wrong pricing etc. Such Debit/Credit Notes will be part of GST returns filing in GSTR-I uploaded by firms.

Q. Can one Invoice contain items having different GST rates?

A. An invoice can contain items having different GST rates say 5%, 12%, 18% and 28%. An invoice should not be rejected on the grounds that items falling under different GST rates have been included in one invoice. However, companies have been advised to segregate the supplies to feature each category of GST rate at one place for easy accounting at Depots vide letter No. 6/F&A/C&C/GST/dated 27 July 2017.

Q. Rejection of supplies from companies due to mismatch of invoice formats from the format issued by F&A Branch vide letter No.6/F&A/C&C/419 dated 16 June 2017

A. Complaints have been received from many companies stating that Depots are refusing delivery of goods against the orders on the pretext that invoice format are not matching with format circulated by F&A Branch vide above quoted letter. In this regard it is once again clarified that invoice format circulated by this office was “PURELY ADVISORY IN NATURE” covering small scale sole proprietorship to HUL. Hence, if the invoice is meeting basic requirements of GST law such as GSTIN, GST rate, CGST, SGST, IGST, and etc., all the depots are to accept the goods.

ISSUES CONCERNING URCs

Q. Will 50% exemption of GST rates apply on sale of non CSD items at URC?

A. Ministry of Finance vide Notification No 06/2017 & 07/2017 both dated 28 June 2017 has exempted sale / supply of goods by URCs to end customers. No URC is entitled to sell non CSD items in the same premises including INCS. Hence, non CSD items sold by any URCs to end customers are not eligible for exemption of GST rates extended by Govt of India.

Q. Is sale of stores to URC located outside State will attract CST in GST Regime?

A. CST charged in VAT regime is subsumed in GST. Hence, interstate sale made by CSD Depots to URCs or any inter Depot transfer will not attract CST. The sales to URCs by CSD Depots are outside the scopes of GST. Hence, CSD Depots have to sale URCs situated within the state or outside the State at whole sale rates issued by F&A Branch. However, liquor is outside the purview of GST, hence sale of liquor made to interstate URCs will be loaded with CST.

Q. Is QD to be calculated without 50% of GST rates inclusive in selling prices?

A. 50% of GST will be the cost to CSD after filing/accounting the exemption operation of 50% GST rate. Hence, it becomes cost for CSD and not any tax element. Hence, it should be considered for computation of QD. However, the same is being sent for clarification to CDA (CSD). After receipt of clarification, a separate instruction will be issued to all the Depots.

Authority: www.csdindia.gov.in

Be the first to comment - What do you think?  Posted by admin - at 11:35 am

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Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%

Government clarifies that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18% ; Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

Reports have been received expressing doubts whether 5-star Hotels are liable to pay GST @ 28% irrespective of the declared tariff of a unit of accommodation.

In this context, it is hereby clarified that accommodation in any hotel, including 5-star hotels, having a declared tariff of a unit of accommodation of less than INR 7500 per unit per day, will attract GST @ 18%. Star rating of hotels is, therefore, irrelevant for determining the applicable rate of GST.

PIB

Be the first to comment - What do you think?  Posted by admin - July 18, 2017 at 5:34 pm

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Applicability of Goods and Service Tax (GST) on Catering Services

IRCTC News : GST on Catering Services

Applicability of Goods and Service Tax (GST) on Catering Services

GOVERNMENT OF INDIA
MINISTRY OF RAILWAYS
(RAILWAY BOARD)

No.2012/TG.III/631/2

New Delhi dated 29.06.2017

The General Managers
All Indian Railways

The CMD/IRCTC
New Delhi

CMD/KRCL,
Navi Mumbai

(Commercial Circular No.44 of 2017)

Sub: Applicability of Goods and Service Tax (GST) on Catering Services

The issue of implementation of Goods and Service Tax (GST) on Catering Services on Indian Railways has been examined in consultation of Finance Commercial Dte. of Railway Board. Accordingly, following are advised:-

1. The chargeable GST on catering services on railways is as under:-

(i) For static units not having facility of air conditioning or central heating at any time during the year- 12% with full Input Tax Credit (ITC)

(ii) For static units having facility of air conditioning or central heating at any time during the year-18% with full Input Tax Credit (ITC)

(iii) For Rajdhani/Shatabdi/Duronto and other Mail/Express trains -18% with full Input Tax Credit (ITC)

2. The above GST on catering charges is applicable w.e.f 01.07.2017.

3. The revised catering apportionment charges for Rajdhani/Shatabdi/Duronto trains and other similar type of Rajdhani trains where catering charges are inbuilt in ticket fare are as under:-

GST-RAILWAY-CATERING-SERVICE

4. In case of Rajdhani/Shatabdi/Duronto type trains where catering charges are part of the ticket fare, amount of GST is to be reimbursed to the service providers on submission of proof of deposit of the same with the appropriate Government Authority. However, in case of Mail/Express trains and other static units where catering services are provided on payment basis and the above taxes are collected directly from the passengers through cash memo, money receipts etc., Zonal railways /IRCTC shall ensure that the GST collect from the passenger are deposited with the concerned Authorities as per the guidelines /procedures laid down by the M/o Finance. To ensure the same zonal railways shall also obtain monthly proof of compliance of tax deposit by the service provides as per laid down procedures.

5. In case of other mail/express trains and static unit, the GST amount shall not be rounded off. In case of showing separate GST amount for CGST and SGST/UTGST in that case also GST amount shall be separately mentioned upto two decimal place. As regard rounding off of chargeable amount, after levy of GST on the total amount it shall be rounded off to the nearest rupee.

6. In addition to the above, GST on catering services of other premium trains like Tejas, Gatiman, Shivalik etc. shall be levied @ 18%. Accordingly, necessary changes in the catering apportionment charges shall be advised by the Zonal Railways to CRIS.

This issue with the concurrence of Finance Dte. of Railway Board.

Please acknowledge receipt of this letter.

sd/-
(Smita Rawat)
Exe. Director (T&C)
Railway Board

Click Here to view the original order

Authority : www.indianrailways.gov.in

Be the first to comment - What do you think?  Posted by admin - July 16, 2017 at 6:01 pm

Categories: GST, Railways   Tags: , , , , , ,

No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation

No GST on Annual subscription/fees charged as lodging/boarding charges by educational institutions from its students for hostel accommodation;
Services provided by an educational institution to students, faculty and staff are fully exempt from GST.

There are some reports that GST@18% will be levied on annual subscription/fees charged for lodging in hostels. This is not true. There is no change in tax liability relating to education and related services in the GST era, except reduction in tax rate on certain items of education.

It may be mentioned that services provided by an educational institution to students, faculty and staff are fully exempt. Educational institution has been defined as an institution imparting

(i) pre-school education and education up to higher secondary school or equivalent;

(ii) education as a part of a curriculum for obtaining a qualification recognised by any law for the time being in force;

(iii) education as a part of an approved vocational education course.

Thus, services of lodging/boarding in hostels provided by such educational institutions which are providing pre-school education and education up to higher secondary school or equivalent or education leading to a qualification recognised by law, are fully exempt from GST. Annual subscription/fees charged as lodging/boarding charges by such educational institutions from its students for hostel accommodation shall not attract GST.

PIB

Be the first to comment - What do you think?  Posted by admin - July 13, 2017 at 6:09 pm

Categories: GST, IT Exemption   Tags: , , , , ,

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