Dated 25th January, 2018

Key Amendments in 25th GST Council Meeting _final

Key Amendments in 25th GST Council Meeting


Introduction

The 25th meeting of the GST Council recommended many relief measures regarding several goods and services. The Council confirmed the roll out of much awaited E-way bill nationwide and notified certain changes in rules of the former. Other relief measures in terms of filing of returns were allowed to taxpayers.

The alert aims to highlight the key changes that were recommended in the latest GST Council meeting.

Intra-state E-way bill to be rolled out with certain modifications in E-way bill rules

E-way bill will be rolled out nationwide on 1st February for inter-state transportation of goods through roads, with 15 states agreeing to implement it on a trial balance for intra-state movement of goods on the same day. E-way bill is expected to serve as an anti-evasive measure.

Certain amendments have been made in the E-way bill rules before it is rolled out nationwide from February 1, 2018. The modifications given effect via notification are as follows 1:

  1. The details of e-way bill shall be made available only to a registered person being a supplier or recipient where the information of the conveyance has been furnished by the supplier or recipient in Part A of FORM GST EWB-01.
  2. E-way bill was required to be generated only if the value of consignment exceeded fifty thousand rupees. However as per the amended rules, compulsory generation of e-way bill is required even if the value of consignment is below fifty thousand rupees in the following cases:
    • Transportation of goods by the principal to a job worker, where both are located in separate states, the principal being liable to generate the e-way.
    • Handicraft goods when transported by a person who is exempted from the requirement of registration, is liable to generate an e-way bill.

    Determination of the value of consignment of goods was a grey area previously which has now been clarified by the Central Government. As per the new notification issued, ‘Consignment value of goods’ shall be determined in the manner in which taxable supply of goods is valued as per Section 15 of CGST Act. The value shall also include CGST, SGST/UTGST and IGST charged, if applicable on any document.

  3. Where the goods are transported by railways, air or by vessel, the registered person shall generate the e-way bill. The information pertaining to the consignment shall be furnished in Part B of FORM GST EWB-01 specifying the serial number and date of the Railway Receipt or the Air Consignment Note or Bill of Lading, as the case may be.
  4. In case of transfer of goods from one conveyance to another during transit, the transporter was required to update the details of conveyance in FORM GST EWB-01. The consignor or the recipient is also required to provide information in Part A of the FORM GST EWB-01.
  5. In case of transportation of goods through e-commerce operator, Part-A of FORM GST EWB-01 shall be furnished by the e-commerce operator.
  6. After furnishing of required information in Part-A of FORM GST EWB-01, by the consignor or the recipient, he may assign the e-way bill number to another registered or enrolled transporter for updating the information in Part-B of FORM GST EWB-01 for further movement of consignment. However, if the details have already been updated by the transporter in Part B of FORM GST EWB-01, the consigner or the recipient will not be allowed to assign the e-way bill number to another transporter.
  7. Certain other goods are kept out of purview of E-way bill in addition to the goods that were already kept outside the ambit:

    • Goods transported are alcoholic liquor for human consumption, petrol, natural gas, motor spirit or aviation fuel.
    • Where the goods transported are covered under Schedule III of the Act (treated as no supply)

    The facility for generation, modification and cancellation of E-way bills is being provided on trial basis on the portal ewaybill.nic.in.

    Once fully operational, the E-way bill system will start functioning on the portal ewaybillgst.gov.in.2

    The procedural information pertaining to the registration process in the common portal has not yet been notified.

Reduction in late fees

The late fee payable for failure to file GSTR-1 (detail of outward supply) , GSTR-5A (OIDAR) , GSTR-5 (Non-resident taxpayers) and GSTR-6 (Input service distributor) has been reduced from Rs. 200 per day to Rs. 50 per day. For Nil return, the late fee is restricted to Rs. 20 per day.

Extension in time limit

The time limit for filing GSTR-6 by an Input Service Distributor, for the month of July, 2017 to February, 2018, has been extended till the 31st March, 2018.

Other Key Amendments 8

  1. For determination of input tax credit for input services and capital goods, the value of exempt goods shall not include the following:
    • Deposits, loans or advances on which interest or discount is earned.
    • However, this will not apply to a banking company and a financial institution including a non-banking financial company engaged in providing services by way of extending deposits, loans or advances.

    • • Value of supply of services by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India.
    • Supply of services to Nepal or Bhutan where payment is made in Indian rupees
  2. A person in charge of conveyance should carry a copy of tax invoice or bill of supply in respect of the conveyance where such person is not required to carry e-way bill as per the specified rules.
  3. Taxable persons who have obtained voluntary registration can cancel their registration before the expiry of one year from the effective date of registration.

1Notification No. 3/2018 – Central Tax dated 23.01.2018

2 Notification No. 9/2018 – Central Tax dated 23.01.2018

3 Notification No. 4/2018- Central Tax dated 23.01.2018

4 Notification No. 6/2018- Central Tax dated 23.01.2018

5 Notification No. 5/2018- Central Tax dated 23.01.2018

6 Notification No. 7/2018- Central Tax dated 23.01.2018

7 Notification No. 8/2018- Central Tax dated 23.01.2018

8 Notification No. 3/2018- Central Tax dated 23.01.2018


Key Amendments in 25th GST Council Meeting _final

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Key Amendments in 25th GST Council Meeting _final

Key Amendments in 25th GST Council Meeting _final
Founder Member

Bhaskar Thakkar

Chief Executive officer

BT Associates, India

thakkar@btassociate.com

Twenty years of exprience in tax practice, specialist in structuring & planing and tax optimization under indirect tax. Lead eastern India indirect tax practice of Ernst & Young in past.