The effective rate of GST for dealers opting for composition scheme revised
The effective rate of GST for manufacturers and traders who have opted for composition scheme under Section 10 of the CGST Act, 2017 has been revised vide Notification No. 1/2018- Central Tax with effect from1 January 2018. The revised rates are:
Dealers | Revised provisions | Earlier provisions |
Manufacturers | 1% (0.5% CGST and 0.5% SGST) of the turnover | 2% (1% CGST and 1% SGST) of the turnover |
Traders | 1% (0.5% CGST and 0.5% SGST) of the turnover of taxable supplies of goods |
1 % (0.5% CGST and 0.5% SGST) of the turnover |
Implementing a nationwide e-Way Bill system
The Central Board of Excise and Customs (CBEC) vide notification no 74/2017-Central Tax has decided to implement a nationwide e-Way Bill system for the interstate movement of goods from 1 February 2018. The nationwide e-Way Bill system would be rolled out in two phases:
Inter-state movement
- On a trial basis latest by 16 January 2018, wherein, traders and transporters can use the system on a voluntary basis.
- Compulsorily from 1 February 2018.
Intra-state movement
- The date of implementation of e-Way Bills for intra-state movement of goods has been left to the discretion of the respective states.
- However, all states will have to implement it latest by 1 June 2018.
Extension in due dates of GSTR 1 and other returns
The due date of GSTR 1 for the monthly and quarterly dealers and various other forms has been extended. The revised dates are:
Form No. and period | Revised due date | Earlier Due Date |
GSTR 1 - July 2017 (Monthly) | 10 January 2018 | 31 December 2017 |
GSTR 1 - August 2017(Monthly) | 10 January 2018 | 31 December 2017 |
GSTR 1 - September 2017(Monthly) | 10 January 2018 | 31 December 2017 |
GSTR 1 - October 2017(Monthly) | 10 January 2018 | 31 December 2017 |
GSTR 1 - November 2017(Monthly) | 10 January 2018 | 10 January 2018 |
GSTR 1 - July to September 2017 (Quarterly) | 10 January 2018 | 31 December 2017 |
FORM GSTR - 5A - July to December (Monthly) | 31 January 2018 | 15 December 2017 |
FORM GSTR - 5 - July to December (Monthly) | 31 January 2018 | 11 December 2017 |
FORM GST ITC - 01 - July to November (Monthly) | 31 January 2018 | 30 November 2017 |
FORM GST CMP – 03 | 31 January 2018 | 30 November 2017 |
Updates on GST online portal
- The functionality for filing TRAN-1 has been removed from the GST Portal.
- Offline tool for transitional form TRAN-2 has been made available on the GST Portal.
- A new functionality to track return status has been introduced on the GST Portal.
- Facility to give details of supplies made to merchant exporters at the rate of 0.1% in all returns has been introduced on the GST Portal.
- A functionality to declare transfer of Input Tax Credit (ITC) in case of transfer, mergers, amalgamation or transfer of business through FORM ITC GST 02 has been made available on the GST portal.
Impact of Goods and Services Tax on Exports
The Parliamentary standing committee has presented the 139th report on the impact of GST on exports before the Rajya Sabha and Lok Sabha. The report has highlighted the dilemma exporters are facing under the GST regime. Also, appropriate suggestions have been proposed to solve the issues. The tabulated version of issues discussed and suggestions offered are:
Issues | Proposed suggestions |
Refund Mechanism
|
Formal mechanism for redressal of exporters
|
Duty Drawback (DBK) and Rebate of State Levies (RoSL)
scheme
|
|
Duty Credit scrips (DCS)
|
|
Reverse Charge Mechanism |
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The committee is of the view that no IGST
should be levied on the following:
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In a nutshell, the committee feels that if the taxes paid on inputs used for exports are going to be eventually refunded, then it is an unnecessary procedure of collecting the taxes in the first place. It has been the case that it is easy to pay the tax, but extremely difficult to get a refund.
Updated GST FAQ's and GST Flyers released by the CBEC
Flyers (a lucid explanation of various GST provisions) have been released by CBEC containing 51 important topics such as registration, cancellation under GST, scope of supply, e-Way Bill, job work, valuation under GST, etc.
Also, based on various frequently asked questions by taxpayers and recent notifications under GST, an updated FAQ 2018 has been released on the CBEC website on 1 January 2018.
SKP's Comments
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