Recent Updates Goods & Services Tax- Circular and Notification central tax

Sep, 18 2018
Indirect Taxation
By Team GST

Recent Updates Goods & Services Tax

Notification (Central Tax)

*Notification No.*		*Notification Date*	*Subject*		*Description*
Notification No. 49/2018 – Central Tax		13.09.2018	Notification amending the CGST Rules, 2017 (Tenth Amendment Rules, 2018)		The government has amended the CGST Rules, 2017 to notify the Form GSTR-9C for furnishing certified copy of audited annual accounts and a reconciliation statement in terms of Section 35(5) of the CGST Act, 2017 read with Rule 80(3) of the CGST Rules, 2017. GSTR 9C should be filed by the taxpayers whose annual turnover exceeds Rs 2 crores during the financial year. All such taxpayers are also required to get their accounts audited and file a copy of audited annual accounts and reconciliation statement of tax already paid and tax payable as per audited accounts along with GSTR 9C.
Notification No. 50/2018 – Central Tax	13.09.2018		Seeks to bring section 51 of the CGST Act (provisions related to TDS) into force w.e.f 01.10.2018	The government has made the TDS provisions under Section 51 of the CGST Act,2017 effective from 1st October 2018. TDS provision has been made applicable with respect to persons specified under clauses (a), (b) and (c) of Section 51(1) and the persons specified below under clause (d) thereof, namely: a. an authority or a board or any other body, - (i) set up by an Act of Parliament or a State Legislature; or (ii) established by any Government, with fifty-one percent. or more participation by way of equity or control, to carry out any function; b. Society established by the Central Government or the State Government or a Local Authority under the Societies Registration Act, 1860 (21 of 1860); c. public sector undertakings
Notification No. 51/2018 – Central Tax		13.09.2018	Seeks to bring section 52 of the CGST Act (provisions related to TCS) into force w.e.f 01.10.2018		The government has made the TCS provisions (Tax Collection at source) under Section 52 of the CGST Act,2017 effective from 1st October 2018.

Circular (CGST)

*Circular No.*	*Circular Date*	*Subject*	*Description*
Circular No. 64/38/2018-GST	14.09.2018	Modification of the procedure for interception of conveyances for inspection of goods in movement, and detention, release and confiscation of such goods and conveyances, as clarified in Circular Nos. 41/15/2018-GST dated 13.04.2018 and 49/23/2018-GST dated 21.06.2018 - regarding	In case a consignment of goods is accompanied with an invoice or any other specified document and also an e-way bill, proceedings under section 129 of the CGST Act may not be initiated, inter alia, in the following situations: Spelling mistakes in the name of the consignor or the consignee but the GSTIN, wherever applicable, is correct; Error in the pin code but the address of the consignor and the consignee mentioned is correct, subject to the condition that the error in the PIN code should not have the effect of increasing the validity period of the e-way bill; Error in the address of the consignee to the extent that the locality and other details of the consignee are correct; Error in one or two digits of the document number mentioned in the e-way bill Error in 4 or 6 digit level of HSN where the first 2 digits of HSN are correct and the rate of tax mentioned is correct; Error in one or two digits/characters of the vehicle number. In case of the above situations, penalty to the tune of Rs. 500/- each under section 125 of the CGST Act and the respective State GST Act should be imposed (Rs.1000/- under the IGST Act) in FORM GST DRC-07 for every consignment.
Circular No. 65/39/2018-DOR	14.09.2018	Guidelines for Deductions and Deposits of TDS by the DDO under GST	The CBIC has issued this circular to provide guidelines for deposit and deduction of the TDS by drawing and disbursing officer under GST. For payment process of Tax Deduction at Source under GST two options can be followed, which are: Option I – [Individual Bill-wise Deduction and its Deposit by the DDO] In this option, the DDO will have to deduct as well as deposit the GST TDS for each bill individually by generating a CPIN (Challan) and mentioning it in the Bill itself. Option II – [Bunching of deductions and its deposit by the DDO] Option-I may not be suitable for DDOs who make large number of payments in a month as it would require them to make large number of challans during the month. Such DDOs may exercise this option wherein the DDO will have to deduct the TDS from each bill, for keeping it under the Suspense Head. However, deposit of this bunched amount from the Suspense Head can be made on a weekly, monthly or any other periodic basis.

Order (CGST)

*Circular No.*	*Circular Date*	*Subject*	*Description*
Order No. 4/2018-GST	17.09.2018	Extension of time limit for submitting the declaration in FORM GST TRAN-1 under rule 117(1A) of the Central Goods and Service Tax Rules, 2017 in certain cases	Taxpayers who were not able to submit the declaration in Form GST TRAN-1 by the due date on account of technical difficulties on the common portal and whose cases have been recommended by the council can now submit their declaration till 31st January 2019.

Highlights:

The Madhya Pradesh AAR has given a ruling in an application filed by the Indian Institute of Management, Indore wherein the institute was established in 1996 by the Government of India as a registered society under the Madhya Pradesh Societies Registration Act, 1973 and is governed by a Board of Governors. The questions which have been posted before the Authority were:
Whether the course - Executive Post Graduate Programme in Management (EPGP), after enactment Indian Institute of Management Act 2017 notified effective from 31st January 2018, is exempted from Goods and Service Tax?
In case of exemption to EPGP, will total amount of fees collected towards EPGP for the academic session 2018-19 be exempted, whether collected before or after enactment of IIM Act 2017 or only amount collected after enactment of IIM Act 2017?

It was held that the Executive Post Graduate Programme will not be eligible for exemption from GST as the same has been categorically excluded from exemption under Entry No.67 to the Notification No.12/2017-Central Tax (Rate) and corresponding notification under MPGST Act, 2017 It is pertinently noted that this particular entry i.e. Entry No.67 is exclusively for providing exemption to the services provided by Indian Institutes of Management, by Heading No. 9992 which stated that Services provided by the Indian Institutes of Management as per the guidelines of the Central Government to their students by way of following educational programs, except Executive Development Programme-
Two-year full-time Post Graduate Programmes in Management for the Post Graduate Diploma in Management, to which the admissions are made on the basis of the Common Admission Test (CAT) conducted by the Indian Institute of Management.
Fellow Programme in Management.
Five-year integrated programme in Management.

4. The AAR Karnataka has given a ruling in an application filed by M/s Emerge Vocational Skills Private Ltd. wherein the applicant was a private limited company engaged in providing specified educational services in the field of Hotel Management. The applicant was also an approved training partner to the National Skill Development Corporation of the Government of India.

5.The issue was whether the services provided by the applicant in affiliation to specified universities and providing degree courses to students under related curriculums are exempt from Goods and Services Tax vide entry no. 66 of the Notification No. 12/2017 - Central Tax dated 28.06.2017?

It was held that the services provided by an educational institution to its students, faculty, and staff is exempt from tax under the Central Goods and Services Tax Act and the applicant qualifies as an educational institution in so far as those courses for which affiliation has been obtained from the University in the State of Karnataka and for which University Curriculum is prescribed and the qualifications recognized by the law for the time being in force is given after the conduct of examinations by such University, the applicant is exempted from Goods and Services Tax.
The AAR Maharashtra has given a ruling in an application filed by Automation & Robotics India Limited, which is engaged in the business of design, manufacturing, procurement, erection, and installation of various types of car parking systems. The issue involved is whether the activity of supply and installation of car parking system' would qualify as immovable property and thereby 'works contract' as defined in Section 2(119) of the CGST Act.
It was held that supply and installation of ‘car parking system’ qualify as immovable property, and is a ‘works contract’ as defined under Section 2(119) of the CGST Act, and also it was observed that the system requires a substantial amount of work to be done at the site like foundation, RCC construction, erection, etc. to be called a ‘car parking system’ and it obtains a state of permanency once made operationally and cannot be easily removed from one place and put into another and such systems have the longevity of existence.

GST Important dates:

GST Return due dates for the month of Sep’2018
Return Type	Due Date
GSTR 1 Monthly	11th Sep'2018
GSTR 3B	20th Sep'2018
GSTR-6 for July’17 to June’18	30th Sep’2018

Quarterly Return for registered person

Quarterly Return for a registered person with an aggregate turnover upto Rs. 1.50 crores
Return Type	Due Date
GSTR 1 ( July-Sep’18)	31st Oct'2018

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Recent Updates Goods and Services Tax- Circular and Notification central tax