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Its been a long time for GST updates. The whole team was quite buzy in an interesting assignment for GST implementations. Here we are with the most happenings posts of India, the GST Updates. Below are some of the most crucial updates on GST as on date.

CENTRAL GOODS & SERVICES TAX (CGST)

Amendments in CGST Rules, 2017on Registration and Composition levy

Central Government vide Notification No. 07/2017-Central Tax, dt. 27-06-2017 has amended the CGST Rules, 2017 as follows:

Rule No.

Existing Provision

Revised Provision

Impact

1 – Short title, Extent and Commencement

Short title, Extent and Commencement

in the heading, the word “Extent” shall be omitted

The Rules are generic and applicable to all hence extent is omitted

10(4) – Issue of registration certificate

Every certificate of registration shall be digitally signed by the proper officer under the Act

Every certificate of registration shall be duly signed or verified through electronic verification code by the proper officer under the Act

The mandate of digital signature has been removed and option of verification through electronic verification code is additionally provided. This is done to support smooth registration under GST as all the proper officers may or may not be in possession of digital signatures which may create a hassle for tax payers.

13(4) – Grant of registration to non-resident taxable person

The application for registration made by a non-resident taxable person shall be signed by his authorised signatory

The application for registration made by a non-resident taxable person shall be duly signed or verified through electronic verification code by his authorised signatory

This is done to support smooth registration under GST non-resident taxable person by giving an option to authorised signatory in this regard.

19(1) – Amendment of registration

Provided further that any change in the mobile number or e-mail address of the authorised signatory submitted under this rule, as amended from time to time, shall be carried out only after online verification through the common portal in the manner provided under the said rule

Provided further that any change in the mobile number or e-mail address of the authorised signatory submitted under this rule, as amended from time to time, shall be carried out only after online verification through the common portal in the manner provided under the sub-rule (2) of rule 8

The amendment is made to provide correct reference. The manner of verification of mobile no. and email id is provided in Rule 8. The words “said rule” would have implied rule 19 itself thus creating interpretational issues,

21(b) – Registration to be cancelled in certain cases

(b) Registration should be cancelled if the said person issues invoice or bill without supply of goods or services in violation of the provisions of this Act, or the rules made there under

Registration should be cancelled if the said person:

(b) issues invoice or bill without supply of goods or services in violation of the provisions of the Act, or the rules made thereunder; or (c) violates the provisions of section 171 of the Act or the rules made thereunder

An additional condition for cancellation of registration is provided that if a registered person violates Anti-Profiteering measures as provided in Sec 171 his registration may be cancelled.

22(3) – Cancellation of registration

Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under sub-rule (1) of rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1)

Where a person who has submitted an application for cancellation of his registration is no longer liable to be registered or his registration is liable to be cancelled, the proper officer shall issue an order in FORM GST REG-19, within a period of thirty days from the date of application submitted under rule 20 or, as the case may be, the date of the reply to the show cause issued under sub-rule (1)

There is no sub-rule 1 under Rule 20 hence the reference has been omitted.

24(1) 2nd Proviso – Migration of persons registered under the existing law

Provided further that a person having centralized registration under the provisions of Chapter V of the Finance Act, 1994 shall be granted only one provisional registration in the State or Union territory in which he is registered under the existing law

Omitted

Omission of this proviso would enable an assessee having centralized registration under existing law to have multiple state provisional registration as against grant only one provisional registration in the State or Union territory in which he is registered under the existing law.

24(3A) – Migration of persons registered under the existing law

New Sub-Rule inserted:

(3A) Where a certificate of registration has not been made available to the applicant on the common portal within a period of fifteen days from the date of the furnishing of information and particulars referred to in clause (c) of sub-rule (2) and no notice has been issued under sub-rule (3) within the said period, the registration shall be deemed to have been granted and the said certificate of registration, duly signed or verified through electronic verification code, shall be made available to the registered person on the common portal

26(3) – Method of Authentication

All notices, certificates and orders under the provisions of this Chapter shall be issued electronically by the proper officer or any other officer authorised to issue such notices or certificates or orders, through digital signature certificate specified under the provisions of the Information Technology Act, 2000 (21 of 2000).

All notices, certificates and orders under the provisions of this Chapter shall be issued electronically by the proper officer or any other officer authorised to issue such notices or certificates or orders, through digital signature certificate or through e-signature as specified under the provisions of the Information Technology Act, 2000 (21 of 2000) or verified by any other mode of signature or verification as notified by the Board in this behalf.

The proper officer has now been provided multiple means for electronic issue of notices certificates as against only digital signature certificate through:

  1. digital signature certificate

  2. e-signature as specified under the provisions of the Information Technology Act, 2000

  3. any other mode of signature or verification as notified by the Board in this behalf

Form GST CMP-04 – Sr. No. 5

Category of Registered Person

(iv) Manufacturers, other than manufacturers of such goods as may be notified by the Government

(v) Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II

(vi) Any other supplier eligible for composition levy.

Category of Registered Person

  1. Manufacturers, other than manufacturers of such goods as may be notified by the Government

  2. Suppliers making supplies referred to in clause (b) of paragraph 6 of Schedule II

  3. Any other supplier eligible for composition levy.

Wrong Numbering Corrected

GST CMP-07 (heading)

[See rule 6(6)]”

[See rule 6(5)]”

Reference to correct rules given

GST REG-12 (Order of Grant of Temporary Registration/ Suo Moto Registration)

<<You are hereby directed to file application for proper registration within 30 days of the issue of this order>>

<<You are hereby directed to file application for proper registration within 90 days of the issue of this order>>

The limit to file application for proper registration as per Rule 16 is 90 days which was not updated in this form. The anomaly has now been corrected.

GST REG-25 (Certificate of Provisional Registration)

  1. Provisional ID

Place <State>

  1. GSTIN

Place <State> omitted

The change has been made to get the form at par with Rule 24(1)(b) which provides for incorporating GSTIN in Certificate of Provisional Registration.

[Notification No. 07/2017-Central Tax, dt. 27-06-2017]

Comment: To enable smooth transition and preparedness for GST w.e.f 1st July 2017.

Turnover Limit for Composition Levy for CGST revised

Central Government vide Notification No. 08/2017-Central Tax, dt. 27-06-2017 has revised the turnover limit for Composition Levy from Rs. 50 lakhs to Rs. 75 lakhs. Thus, an eligible registered person, whose aggregate turnover in the preceding financial year did not exceed Rs. 75 lakh, may opt to pay, in lieu of the central tax payable by him, an amount calculated at the rate of, ––

S. No.

Rate

Eligible Assessee

(i)

1% of the turnover in State

Manufacturer

(ii)

2.5% of the turnover in State

Supplier making a supply, by way of or as part of any service or in any other manner whatsoever, of goods, being food or any other article for human consumption or any drink (other than alcoholic liquor for human consumption), where such supply or service is for cash, deferred payment or other valuable consideration

(iii)

0.5% of the turnover in State

In case of other supplies

However, for the following states turnover limit for composition levy will be Rs. 50 lakhs in the case of an eligible registered person:

 

Arunachal Pradesh

Assam

Manipur

Meghalaya

Mizoram

Nagaland

Sikkim

Tripura

Himachal Pradesh

 

Further a person will not be eligible to opt for the composition scheme if he is involved in manufacturing of the following goods:

  1. Ice cream and other edible ice, whether or not containing cocoa

  2. Pan masala

  3. All goods, i.e. Tobacco and manufactured tobacco substitutes

Similar provision has also been issued under UTGST vide Notification No. 2/2017-Union Territory Tax dt. 27-06-2017

[Notification No. 08/2017-Central Tax, dt. 27-06-2017 & Notification No. 2/2017-Union Territory Tax dt. 27-06-2017]

The above extract is taken from ICAI (Indirect tax committee). For detailed notes you can refer the website http://idtc.icai.org/

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