Key Updates in Goods & Services Tax – February 2019
Supplies against Advance Authorization shall be considered as “Deemed Exports”
Notification No. 01/2019 was issued to provide the conditions for treating the Supplies made against advance authorization as “Deemed Exports” which was earlier notified vide Notification No. 48/2017:
- The Pre-import condition was removed;
- A new condition of submitting the certificate of CA stating that the goods so imported shall be used for in manufacture and supply of taxable goods has been inserted;
- CA Certificate should be submitted within a period of 6 months from the date of supply;
- CA certificate is not required where the credit on inputs used in the manufacture of export goods was not availed.
- Composition Scheme: the table under rule 7 amended to specify/clarify that the same rate of 0.5% shall be applicable for the goods & services supplied by “Any other supplier eligible for composition levy under section 10 and the provisions of this Chapter”
- Multiple Registrations in the same State:
- Rule 8: Proviso for specifying the persons to get the Separate GSTIN for the SEZ units has been omitted. The same had been included in the Sec 17 of the CGST amendment act, 2018;
- Rule 11: Amended to include the procedure option of obtaining different registrations for each of the places of business located in the same state;
- Accordingly, instruction 12 of FORM GST REG-01 has been amended to replace the words “Places of business” in place of “business verticals.
- Suspension of Registration:
- Rule 21 A: New rule has been inserted to include the concept of Suspension of Registration;
- This shall be applicable for the cases where the Supplier has applied for Cancellation / as per the decision of the proper officer;
- Accordingly a note “Note: – Your registration stands suspended with effect from (date).” Shall be inserted in at the end of FORM GST REG-17 and FORM GST REG-20;
- Revised Invoices, Debit/Credit Notes:
- Revised Invoice: Rule 53(1) has been amended to exclude Debit/Credit notes from its purview, thereby, restricting it only for revised invoices;
- Debit/Credit Notes: Rule 53(1A): New rule has been inserted to prescribe the contents of the Debit/Credit notes
- In Section 34 amendment is made to enable the registered person to issue a single or multiple credit notes or debit notes against multiple invoices.
- Detail of all invoices against which a single credit note or debit note has been issued shall be provided. Hence, a credit note or debit note shall still be linked with a single or multiple invoices, as the case may be.
- It is clarified that the change in the words in Sec 140(1) from “CENVAT credit“ to “Eligible duties” doesn’t result in denial of carrying forward of the credit balance of Service tax.
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