Key Updates in Goods & Services Tax (GST) : Collection, Extension, Appointment and more

Exemption from GST payment under Reverse Charge on Procurements made from Unregistered Person further extended till September 30, 2018

The Central Government vide Notification No. 12/2018 – Central Tax (Rate) dated 29th June 2018 has extended the exemption available to the registered person from payment of GST under reverse charge on the procurement of Goods or Services from unregistered suppliers till 30th September 2018. Similar notifications have been issued under the IGST Act vide Notification No.13/2018 – Integrated Tax (Rate) dated 29th June 2018 and under the UTGST Act vide Notification no. 12/2018 –Union Territory Tax (Rate) dated 29th June 2018. Therefore, any registered person procuring taxable goods/services from unregistered suppliers, shall not be required to pay GST under reverse charge mechanism provided where the aggregate value of such supplies of goods or service received by a registered person from any or all the unregistered suppliers exceeds five thousand rupees in a day.

Appointment of new Chairman of Central Board of Indirect Taxes and Customs

Shri S. Ramesh, IRS has been appointed as Chairman of Central Board of Indirect Taxes and Customs (CBIC). Prior to his elevation, he was Member (Administration) in the Board. Shri S. Ramesh began his career in Mumbai as Assistant Commissioner, Central Excise and thereafter in Mumbai Customs. He has worked in various capacities in Hyderabad, Nagpur, Chennai, Trichy etc. He was the Chief Commissioner, Chennai Customs Zone from 2013 to 2016. Thereafter, he took over as Director General, Systems & Data Management. He joined the Board in September 2016 as Member (IT, Central Excise & Service Tax).

GST revenue collection for June 2018

The total gross revenue collected in the month of June 2018 is Rs. 95,610/- Crore segregation of which is given below: The total number of GSTR 3B Returns filed for the month of May up to June 2018 is 64.69 Lakhs. The total revenue earned by the Central Government and the State Governments after settlement in the month of June 2018 is Rs. 31,645/- Crore for CGST and Rs. 36,683/- Crore for SGST. The current month’s revenue collection is Rs. 95,610/- Crore as compared to last month’s revenue of Rs. 94,016/- Crore. Further, the gross revenue collection in the month of June 2018 is Rs. 95,610/- Crore whereas the monthly average of 9 months GST collection in the last financial year (2017-2018) was Rs. 89,885/- Crore.

Input Tax Credit not to be reversed on Account of Non-payment to the supplier in case of the amount incurred by the recipient and included value of Taxable Supply

The Central Government vide Notification No. 46 /20/2018 –GST dated 13th June 2018 has inserted a new proviso in Rule 37 of CGST Rule 2017. Inserted proviso says that the value of supplies on account of any amount added in accordance with the provisions of clause (b) of sub-section (2) of section 15 (amount that the supplier is liable to pay in relation to such supply but which has been incurred by the recipient of the supply and not included in the price actually paid for the goods or services) shall be deemed to have been paid for the purposes of the second proviso to sub-section (2) of section 16 (reversal of Input Tax Credit in case where the amount towards the value of supply along with tax payable has not been paid to supplier within 180 days from date of issue of invoice.) With insertion of this proviso any amount that the supplier is liable to pay in relation to supply but which has been incurred by the recipient of the supply and not included in the price actually paid or payable for the goods or services or both shall be deemed to have been paid and no reversal of input tax credit on such amount is required to be made in case recipient fails to pay to the supplier the amount towards the value of supply along with tax payable thereon within a period of one hundred and eighty days from the date of issue of invoice.

Transporter registered in more than one State under same PAN may apply for a Unique Common Enrolment Number

The Central Government vide Notification No. 28/2018 –GST dated 19th June 2018 has inserted a subrule 1A in Rule 58 of Central Goods and Service Tax Rules,2017. Inserted rule says that a transporter who is registered in more than one State or Union Territory having the same Permanent Account Number, he may apply for a unique common enrolment number by submitting the details in FORM GST ENR-02 using any one of his Goods and Services Tax Identification Numbers, and upon validation of the details furnished, a unique common enrolment number shall be generated and communicated to the said transporter. Provided that where the said transporter has obtained a unique common enrolment number, he shall not be eligible to use any of the Goods and Services Tax Identification Numbers for the purposes of the said Chapter XVI. By this insertion, a transporter who is registered in more than one State or Union Territory having the same Permanent Account Number may apply for a unique common enrolment number rather than applying separately for different registrations.

Change of Email and Mobile Number of the authorized signatory by Taxpayers with assistance from the Jurisdictional Tax Officer under GST system

A facility to update email and mobile number of the authorized signatory is available in the GST System. The email and mobile number can be updated by the concerned Jurisdictional tax authority of the taxpayer as per the following procedure: Download the full guide to know all steps required to change of email and mobile number.

No change in the GST Law and Taxation relating to farmers since July 2017

It was speculating in few sections of the Press that certain changes have been made in GST law relating to farmers, which will come into force with effect from 1st June 2018 according to which farmers would be required to take registration and pay GST of 18% when they lease out their land. This news is factually incorrect and baseless. Central Government has clarified through a press release that there has been no change in the GST law and taxation relating to farmers since July 2017, when GST was implemented. Support services to agriculture, forestry, fishing or animal husbandry are exempt from GST. Such exempted support services include renting or leasing of vacant land with or without a structure incidental to its use. Thus, renting or leasing of land by farmers for agriculture, forestry, fishing or animal husbandry on batai (share cropping) or otherwise is also exempt from GST. Further, agriculturists are also exempted from taking GST registration. Agriculturist has been defined to mean an individual or a HUF who undertakes cultivation of land-

• by own labour
• by the labour of family
• by servants or wages payable in cash or kind or by hired labour under personal supervision or the personal supervision of any member of the family.

Roll out of e-Way Bill System for Intra-State movement of Goods

As per the decision of the GST Council, e-Way Bill system for inter-State movement of goods has been rolled out from 1st April 2018. As on 30th May 2018, e-Way Bill system for intra-State movement of goods has been rolled out in the States of Andhra Pradesh, Arunachal Pradesh, Assam, Bihar, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Manipur, Meghalaya, Nagaland, Rajasthan, Sikkim, Telangana, Tripura, Uttarakhand and Uttar Pradesh along with the Union Territories of Andaman & Nicobar Islands, Chandigarh, Dadra & Nagar Haveli, Daman & Diu, Lakshadweep and Puducherry. It is informed that e-Way Bill system for intra-State movement of goods has been implemented in the following States as per below schedule- For any GST related query or if you require professional services related to GST contact us today. Download this full report here.

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