CGST Notification No. 65/2017 – Seeks to exempt suppliers of E Commerce platform from obtaining Compulsory Registration

(Last Updated On: November 15, 2017)

CGST Notification no. 65/2017 exempts suppliers of e commerce platform from registration 

Seeks to exempt suppliers of services through an e-commerce platform from obtaining compulsory registration.


[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]

                                                              Government of India
                                                                Ministry of Finance
                                                          (Department of Revenue)
                                             [Central Board of Excise and Customs]

                                              Notification No. 65/2017 – Central Tax

                                                                                          New Delhi, the 15th November, 2017

G.S.R. …..(E).— In exercise of the powers conferred by sub-section (2) of section 23 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereafter in this notification referred to as the said Act), the Central Government, on the recommendations of the Council, hereby specifies the persons making supplies of services, other than supplies specified under subsection (5) of section 9 of the said Act through an electronic commerce operator who is required to collect tax at source under section 52 of the said Act, and having an aggregate turnover, to be computed on all India basis, not exceeding an amount of twenty lakh rupees in a financial year, as the category of persons exempted from obtaining registration under the said Act:

Provided that the aggregate value of such supplies, to be computed on all India basis, should not exceed an amount of ten lakh rupees in case of “special category States” as specified in sub-clause (g) of clause (4) of article 279A of the Constitution, other than the State of Jammu and Kashmir.

                                                                                                       [F. No.349/58/2017-GST(Pt)]

                                                                                                            (Dr.Sreeparvathy S.L.)
                                                                             Under Secretary to the Government of India

Source : Press Reports

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GSTR Filing Due Dates – Press Release

Press Release
10th November, 2017
Recommendations made by the GST Council in the 23rd meeting at Guwahati on 10th November, 2017

The GST Council, in its 23rd meeting held at Guwahati on 10th November 2017, has
recommended the following facilitative measures for taxpayers:

Return Filing
a) The return filing process is to be further simplified in the following manner :

i. All taxpayers would file return in FORM GSTR-3B along with payment of tax by 20th
of the succeeding month till March, 2018.

ii. For filing of details in FORM GSTR-1 till March 2018, taxpayers would be divided into two categories. Details of these two categories along with the last date of filing GSTR 1 are as follows:

(a)Taxpayers with annual aggregate turnover up to Rs. 1.5 crore need to file GSTR-1 on
quarterly basis as per following frequency:

Period                            Dates
Jul- Sep             :          31st Dec 2017
Oct- Dec            :          15th Feb 2018
Jan- Mar           :          30th April 2018

(b) Taxpayers with annual aggregate turnover more than Rs. 1.5 crore need to file
GSTR-1 on monthly basis as per following frequency:

Period              Dates

Jul- Oct :      31st Dec 2017
Nov  :          10th Jan 2018
Dec :            10th Feb 2018
Jan :             10th Mar 2018
Feb  :           10th Apr 2018
Mar :           10th May 2018

iii. The time period for filing GSTR-2 and GSTR-3 for the months of July, 2017 to March
2018 would be worked out by a Committee of Officers. However, filing of GSTR-1
will continue for the entire period without requiring filing of GSTR-2 & GSTR-3 for
the previous month / period.

b) A large number of taxpayers were unable to file their return in FORM GSTR-3B within due date for the months of July, August and September, 2017. Late fee was waived in all such cases. It has been decided that where such late fee was paid, it will be re-credited to their Electronic Cash Ledger under “Tax” head instead of “Fee” head so as to enable them to use that amount for discharge of their future tax liabilities. The software changes for this would be made and thereafter this decision will be implemented.

c) For subsequent months, i.e. October 2017 onwards, the amount of late fee payable by a
taxpayer whose tax liability for that month was ‘NIL’will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts).

Manual Filing

d) A facility for manual filing of application for advance ruling is being introduced for the time being. Further benefits for service providers

e) Exports of services to Nepal and Bhutan have already been exempted from GST. It has now been decided that such exporters will also be eligible for claiming Input Tax Credit in respect of goods or services used for effecting such exempt supply of services to Nepal and Bhutan.
f) In an earlier meeting of the GST Council, it was decided to exempt those service providers whose annual aggregate turnover is less than Rs. 20 lakhs (Rs. 10 lakhs in special category states except J & K) from obtaining registration even if they are making inter-State taxable supplies of services. As a further measure towards taxpayer facilitation, it has been decided to exempt such suppliers providing services through an e-commerce platform from obtaining compulsory registration provided their aggregate turnover does not exceed twenty lakh rupees.
As a result, all service providers, whether supplying Intra-State, inter-State or through e-commerce operator, will be exempt from obtaining GST registration, provided their aggregate turnover does not exceed Rs. 20 lakhs (Rs. 10 lakhs in special category States except J & K).
Extension of dates
g) Taking cognizance of the late availability or unavailability of some forms on the common portal, it has been decided that the due dates for furnishing the following forms shall be extended as under:
S. No. FORM and Details                                     Original Due Date           Revised Due Date
1 GST ITC-04 – Quarter July-September, 2017             25.10.2017                           31.12.2017

2 GSTR-4  – Quarter July September, 2017                  18.10.2017                             24.12.2017

3 GSTR-5 for July, 2017                                                    20.08.2017 or

7 days from the

last date of registration

whichever is earlier                11.12.2017

4 GSTR-5A for July, 2017                                                      20.08.2017                         15.12.2017

5 GSTR-6 for July, 2017                                                         13.08.2017                         31.12.2017

6 TRAN-1                                                                                 30.09.2017                         31.12.2017                                                                                                                                       (Onetime option

of revision also

to be given till this date)

Revised due dates for subsequent tax periods will be announced in Due Course.

Benefits for Diplomatic Missions/UN organizations

h) In order to lessen the compliance burden on Foreign Diplomatic Missions / UN Organizations, a centralized UIN will be issued to every Foreign Diplomatic Mission / UN Organization by the Central Government and all compliance for such agencies will be done by the Central Government in coordination with the Ministry of External Affairs.

2. Relevant notifications for all of the above decisions will be issued shorty, so as to be
effective from 15.11.2017.
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Source : Press Release

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No GST on Second-Hand goods if sold cheaper

The buying and selling of second-hand goods will not attract Goods and Services Tax (GST) if sold at a price cheaper than the purchase price, the government said on Saturday.

Rule 32(5) of the Central Goods and Services Tax (CGST) Rules, 2017, provides that
where a taxable supply is provided by a person dealing in buying and selling of second
hand goods or used goods as such or after such minor processing which does not change
the nature of the goods and where no input tax credit has been availed on the purchase of such goods, the value of supply shall be the difference between the selling price and the purchase price and where the value of such supply is negative, it shall be ignored. This is known as the margin scheme.

The clarification comes after doubts were raised regarding the applicability of the Margin Scheme under the GST for dealers in second-hand goods in general and for dealers in old and used empty bottles in particular.

“The value will be the difference between selling and purchase price and where the value of such supply is negative it shall be ignored, provided there is no change in nature of goods and credit on purchased second-hand goods is not availed by the dealer. In case the value determined is negative, i.e. goods are sold at loss then tax will not be payable,” GST expert Pritam Mahure told IANS.

Thus, Margin Scheme can be availed of by any registered person dealing in buying and selling of second-hand goods (including old and used empty bottles) and who satisfies the conditions as laid down in Rule 32(5) of the Central Goods and Services Tax Rules, 2017.
Rule 32(5) of the CGST Rules is a special sub-rule for the person buying and selling second-hand goods (for instance used cars, television and mobiles).

Further, the government notification exempts Central Tax leviable on intra-state supplies of second-hand goods received by a registered person dealing in buying and selling of second-hand goods (who pays the central tax on the value of outward supply of such secondhand goods) from any supplier, who is not registered.

“This has been done to avoid double taxation on the outward supplies made by such registered person since such person operating under the Margin Scheme cannot avail input tax credit on the purchase of second-hand goods,” the Finance Ministry said here in a statement.

Source : Press Information

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GST – Composition Scheme Threshold Limit Increase

Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.

 

Press Information Bureau
Government of India
Ministry of Finance
                                                                                                               10-November-2017 20:48 IST

Changes recommended in Composition Scheme

The following changes were recommended in the Composition Scheme on the basis of discussions held in the 23rd meeting of the GST Council held at Guwahati today.

 

  1. Uniform rate of tax @ 1% under composition scheme for manufacturers andtraders (for traders, turnover will be counted only for supply of taxable goods). No change for composition scheme for restaurant.

 

  1. Supply of services by Composition taxpayer upto Rs 5 lakh per annum will be allowed by exempting the same

 

iii. Annual turnover eligibility for composition scheme will be increased to Rs 2 crore from the present limit of Rupees 1 crore under the law. Thereafter, eligibility for composition will be increased to Rs. 1.5 Crore per annum.

 

  1. The changes recommended by GST Council at (ii) and (iii) above will be implemented only after the necessary amendment of the CGST Act and SGST Acts.

 

DsM/SBS

Source : Press Information Source

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GST Council raises Composition Scheme threshold to Rs 2 crore

The GST Council today decided to raise Composition Scheme threshold to Rs 2 crore. The Council, which held its 23rd meeting in Guwahati, decided that there will be no inter-state taxes and input tax credit for composition dealers. Only 50 items, mostly demerit, sin and luxury goods will be in  the top 28 per cent tax bracket. Meanwhile, West Bengal Finance Minister Amit Mitra said aggregate revenue loss for Centre due to GST stood at Rs 60,000 crore and revenue loss for states is at Rs 30,000 crore.

The GST Council at its 23rd meeting in Guwahati has slashed tax rates on 177 items in the top 28 per cent slab. (Photo: ANI)

“Lower 18 per cent GST will be levied on chewing gums, chocolates, after shave, deodorant, washing power, detergent, marble,” Bihar Deputy Chief Minister Sushil Modi said. The all-powerful council pruned the list of items attracting the top 28 per cent tax rate to just 50 from 227 previously, Modi told reporters here. In effect, the council cut rates on 177 goods.

“There were 227 items in the 28 per cent slab. The fitment committee had recommended that it should be pruned to 62 items. But the GST Council has further pruned 12 more items,” Modi said. He said all types of chewing gum, chocolates, preparation for facial make-up, shaving and after-shave items, shampoo, deodorants, washing powder detergent and granite and marble will attract lower 18 per cent tax rate.

“There was unanimity that in 28 per cent category there should be only sin and demerit goods. So, today the GST Council took a historic decision, that in the 28 per cent slab there will be only 50 items and the remaining items have been brought down to 18 per cent,” he said.

Paints and cement have been retained in the 28 per cent tax bracket. “Luxury goods like washing machines and air conditioners have been retained at 28 per cent,” Modi said. The decision taken by the GST Council will have a revenue implication of Rs 20,000 crore annually. “There is consensus that slowly 28 per cent slab should be brought to 18 per cent. But it will take some time because it has a big revenue implication,” he said.

The decision was taken in 23rd GST meet, which is currently underway, in Guwahati, Assam. The tax cut was expected as Finance Minister Arun Jaitley earlier this week had hinted at bringing down the number of products in 28 per cent GST slab. While speaking at India Today Conclave, the Finance Minister said that some of the items should never have been in the 28 per cent slab. “We have been gradually bringing them down. The whole idea is, as your revenue collections neutralise we must prune it and that is the pattern in which the Council has so far been functioning. I see that as a future guide as far as the Council is concerned,” Jaitley had said.

 The GST Council in the last 3-4 meetings has slashed rates on over 100 items. According to the reports, the Council may reduce taxes on certain common use items such as handmade furniture, plastic products and daily use items like shampoo. There have been demands for lowering tax on wooden furniture as it is mostly handmade by unorganised sector artisans, with the middle class as the primary consumers. Other items in the same tax basket include shower baths, sinks, wash basins, bidets, lavatory pans, seats and covers, flushing cisterns and similar sanitary ware of plastics.Earlier in October, Revenue Secretary Hasmukh Adhia had advocated for a complete overhaul of the tax rates under the GST regime. In an interview to PTI, Revenue Secretary said: “There is a complete overhauling that is required. It is possible that some items in the same chapter are divided. There is a need for harmonisation of items chapter wise and wherever we find there is a big burden on small and medium businesses and on common man, if we bring them down, there will be a better compliance.”

Ever since the new tax regime came into being, the Council has reworked various provisions to make it more industry friendly. The turnover threshold for composition scheme, under which businesses can pay taxes at a nominal rate, has been hiked to Rs 1 crore, from Rs 75 lakh earlier. Items likely to see slash in tax rates are those used in every households, including sanitary ware, suitcase, wall paper, plywood, stationery articles, watch, play instruments, among others, said Modi, who heads a five-member GoM to monitor technology-related implementation issues of the GST. The objective behind lowering taxes is to give more relief to the small businessmen and consumers.Govt to deploy skill trainers to help traders file returns

Meanwhile, the government has decided to deploy thousands of skill trainers who will help small businesses as well as individuals in fling returns as per the Central government’s new guidelines. The Central Board of Excise and Custom’s (CBEC) over 4,500 GST seva kendras will also help these people.

The step has been taken to help small traders after the government faced criticism for the multi-stage system that needs to be followed to file returns.

Instead of monthly returns, the Centre and the states could soon make it must to file returns quarterly. Under the government’s composition scheme – apart from exemption from the filing of details such as invoices, and rebate on card or an electronic wallet payments – those with annual turnover of Rs 1.5 crore would have to just pay 1% tax flat.

Source : Press Information

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GST Council Slashes Tax Rates on 177 items

The GST Council decided to cut the tax rate on 177 items from 28% to 18%, leaving only 50 items in the highest tax slab and offering major relief to consumers and businesses.

Since businesses with Rs20 lakh annual sales come under the GST, these small units were beset with a higher tax burden, which the GST Council has tried to correct. Photo: PTI

The Goods and Services Tax (GST)) Council on Friday slashed rates across the board, including for a range of daily items of consumption, relaxed penalties and tweaked rules to make it easier for businesses, especially small and medium enterprises, to comply.

The feel-good package from the council, which comes into effect from 15 November, is likely to boost consumer demand, reduce disquiet over compliance costs and also lend fresh momentum to the tax reform initiative.

The GST Council at its 23rd meeting in Guwahati has slashed tax rates on 177 items in the top 28 per cent slab. (Photo: ANI)

The Goods and Services Tax (GST) Council on Friday decided to slash rates on more than 175 items, reducing taxes on these from the existing 28 percent in one of the biggest tax reductions since the new system kicked-in from July 1.

The council, which is currently meeting in Guwahati, has decided to cut keep only 50 luxury and `sin’ goods like tobacco in the highest slab, paving the way for price cuts in a raft of commonly used goods from furniture to sanitary ware.

Daily use products such as shampoo, chocolates, beauty products and construction items such as marble and granite will cease to be in the 28 percent slab, Bihar Deputy Chief Minister Sushil Modi said today at the sidelines of the 23rd GST Council meeting in Guwahati.

The tax cuts will have a revenue implication of about Rs 20,000 crore.

 The council is set to approve sweeping changes including simpler procedures, a single return filing form for small firms and several changes to make composition scheme more attractive.

 

The GST Council—the apex body for decision making headed by finance minister Arun Jaitley— today in its 23rd meeting in Guwahati will also discuss the proposal to do away with the distinction between air-conditioned (AC) and non-air conditioned restaurants (not under composition scheme) and tax them at 12 percent.

The reduction in rates will be a significant step towards simplification of the GST to support the trader community ahead of the election in Gujarat that will be held in two phases—December 4 and 11. Small and Medium-Sized Enterprises (MSMEs) have been hit by the implementation of the new indirect tax system and crucial steps will be taken to mitigate their challenges.

GST, billed as the country’s biggest indirect tax overhaul, has consolidated a dozen of state and central duties into one single levy. All goods and services have been fitted into four broad slab structure –5, 12, 18 and 28 percent—along with a cess on luxury and demerit goods such as tobacco, pan masala and aerated drinks.

In the next few hours, the Council is expected to take crucial decisions to make composition scheme more attractive,improve compliance burden and may explore the possibility of including real estate under GST.

Prime Minister Narendra Modi took to Twitter and said, “All our decisions are people-inspired, people-friendly and people-centric. We are working tirelessly for India’s economic integration through GST.”

It is one of the biggest packages concessions announced after the new indirect tax system took effect on 1 July.

The tax reductions will, however, result in a revenue loss of about Rs20,000 crore a year, four people who attended the council meeting said.

A state finance minister explained that buoyancy in GST revenue had given the council the fiscal cushion to undertake the cuts. “The revenue loss of states has come down from 28% to 17% in August. This has emboldened the council to cut rates and take the hit,” the person said.

The biggest rationalization was the decision to cut the tax rate on 178 items from 28% to 18%, leaving only 50 items in the highest tax slab and offering major relief to consumers and businesses.

“There was unanimity that in the 28% slab, there should only be the so called sin and demerit goods (the consumption of which is discouraged through high tax rates). So, today the council took a historic decision to retain only 50 items in the highest slab and to bring down the rate on the rest to 18%,” said Bihar deputy chief minister Sushil Kumar Modi..

The tax rate was reduced on a range of goods, from granite and marble to chewing gum and chocolates, deodorants and detergents.St

Vivek Gambhir, managing director and CEO of Godrej Consumer Products Ltd, said in an email statement, “We remain committed to making our products more affordable and accessible for the mass population, thereby driving consumer demand. In many of our categories, penetrating rates are low and so, the headroom for growth is significant.”

Jammu and Kashmir finance minister Haseeb Ahmed Drabu said that tax rate rationalization was a continuous process and that, eventually, further rate cuts may be possible. West Bengal finance minister Amit Mitra said his government had pitched for retaining only tobacco and big luxury items in the highest tax slab.

In other relief measures, the council also decided to bring more units within the scope of a special tax payment window for small and medium enterprises (SMEs) called the composition scheme and halved the tax rate allowed under it to 1%. The eligibility threshold for the scheme too has been raised to Rs1.5 crore from Rs1 crore now.

The council sought to tackle two major factors that gave GST a bad name—the practice of restaurants not passing on to consumers the benefit of tax rebates that they got in the new system and the rigours of compliance that big and small businesses faced.

Accordingly, the GST rate on restaurants has been slashed to 5% for all restaurants except those in the category of five-star hotels where the tax rate remains 18%. However, benefit of tax rebates is restricted to the 18% category.

The response to this move was, however, mixed. “Effectively the consumer pocket will get a marginal benefit and not as it seems. This move is also retrograde to bringing in players in the organized segment. In fact, restaurants are like the ‘gatekeepers’ which have worked with suppliers to bring them into the formal economy,” said Rahul Singh, vice-president, National Restaurant Association of India. Singh is also founder and CEO, The Beer Cafe.

Source : Press Information

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GST filing may be tweaked to simplify it: GSTN Chairman

The government is considering a proposal to tweak the way people file their goods and services tax (GST) returns. The move, to customise the form as per the varying requirements of the taxpayer, is expected to significantly simplify the filing process which has been criticised for being complex and mired with glitches.

In an interview to ET, Ajay Bhushan Pandey, the newly-appointed chairman of the GST Network (GSTN), said instead of having a standard form for everyone, users can be asked a few questions upon signing in and then the best suited form can be displayed as per their transactions and nature of business. “We are looking at these options so that the forms can be simpler,” he said.

The form in the system can be dynamically generated and only the relevant portions which are applicable to a particular dealer will be displayed so that he won’t have any difficulty in filing the returns, he said. “The ultimate aim is that the small tax payers should be able to file the returns without much assistance from outside,” added Pandey , who is also the CEO of the Unique Identification Authority of India (UIDAI), which administers the Aadhaar project.
So far, 45 lakh people have filed GSTR 3B for the month of September, while 56 lakh and 52 lakh have filed their returns for July and August, respectively .

Despite the initial teething troubles, 56 lakh dealers have filed returns on the GSTN portal, Pandey said. “It means that 56 lakh people somehow know how to file the returns on a new system. So progressively more and more people will be able to come on the platform.” The government has also started an exercise to collect feedback and proactively reach out to people who have filed the returns to understand the nature of their concerns so that they can be rectified. Pandey said as a first step, forms have to be simplified.

The initial hiccups in the system happened because people were not used to the new system, he said. Since the GST launch on July 1, the government has taken several measures to alter the tax structure as well as the filing process in order to make it less tedious for business entities to file their returns. “There are 35 states and union territories apart from service tax and excise tax departments; so almost 37 systems had to migrate to one platform. With 90 lakh dealers and thousands of tax officials along with so many tax practitioners – naturally if you bring any change like this, people might face certain difficulties initially,” Pandey said. Most of the people who are required to pay the taxes have already filed the returns, he said. The government is also discussing ways to reduce the periodicity of filings of returns.

Source : Press Reports / Economic Times
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