GST-SEMINAR R. SRIVATSAN - Latest Changes in GST LAWS 10-04-2019 - The Madras Chamber of Commerce

GST- SEMINAR
                             10-04-2019

      Latest Changes in GST LAWS

                       R. SRIVATSAN
                              Sr. FACULTY
   NATIONAL ACADEMY OF CUSTOMS INDIRECT TAXES & NARCOTICS
                                  CHENNAI

www.cbic.gov.in   CENTRAL BOARD OF INDIRECT TAXES & CUSTOMS   www.gst.gov.in

GST – SIGNIFICANT CHANGES
                    An overview

                   Rule         Miscellaneous
                 Changes

  Act
Amendment

                                 Procedural
                 Circulars      Notifications
                                  & Orders

GST (Amendment) Act, 2018

Assent on 29th August 2018 to make amendments to following GST laws:
     The Central Goods and Services Tax (Amendment) Act 2018
     The Integrated Goods and Services Tax (Amendment) Act 2018
     The Union Territory Goods and Services Tax (Amendment) Act 2018
     The Goods and Services Tax (Compensation to States) Amendment Act
       2018.
The GST council in its 31st GST Council Meeting held on 22nd December
2018, had announced through the press release that the effective date of
applicability of amendments in GST Act(s) 2018 will be from 1st
February 2019.

CBIC has notified (under CGST & IGST) that all the changes to GST Law as
covered in this session will be applicable from 1st Feb 2019

 The GST Rules have also been amended to be in line with the changes
 brought through the Amendment Act by issue of Notifications 03/2019 CT,
 05/2019 CT, 06/2019 CT, 02/2019 IT & 03/2019 IT

GST (Amendment) Act, 2018
Business Vertical,        This definition has been deleted in its entirety
consequent to Change in the Procedure for Registration under Section 25(2)
Section 2(18)

Levy and collection:

Section 9(4) has been replaced. To restrict the levy of tax on RCM, to receipt of
supplies by notified classes of registered persons from unregistered suppliers
on the recommendations of the Council. This is against the earlier provision
that was applicable for all purchases from the unregistered supplier. Section 9.

Composition levy:
Amended so as to raise the statutory threshold of turnover for a taxpayer to be
eligible for the composition scheme from Rs 1 crore to Rs 1.5 crores,
and
to allow the composition taxpayers to supply services (other than restaurant
services), for up to a value not exceeding 10% of turnover in the preceding
financial year, or five lakh rupees, whichever is higher. Section 10.

GST (Amendment) Act, 2018

Eligibility and conditions for taking the input tax credit:
Amended in order to provide ITC in cases of “Bill- to-Ship-to” model in the
case of supply of services. The said Amendment further seeks to include
the provisions relating to the new return format as specified in the
proposed new section 43A, for availing the input tax credit. Section 16.

Persons liable for registration:
Amended so as to increase the threshold turnover for registration for
ËXCLUSIVE SUPPLIER OF GOODS to Rs. 40 Lakhs while in special category
States of Arunachal Pradesh, Himachal Pradesh, Meghalaya, Nagaland,
Manipur, Tripura Sikkim and Uttarakhand from ten lakh rupees to Rs.20
Lakhs . Section 22.

Supplier of Service and Supplier of Goods and Service will still have the
earlier Threshold Limits.

REAL ESTATE SECTOR
Notification No: 03 to 08 /2019-Central Tax (Rate) all dated:29-03-
2019 speaks about the changes brought fort under Reality Sector.
1. Notification No:3/2019 : Notifies CGST rates of various services for
   real estate sector varying from 0.75% to 3.75% to 9 % under CGST Act
   2019.
2. Notification No:4/2019 : Exempts certain services for real estate sector viz
    TDR, Salami etc.,. With conditions.
3. Notification No: 5 & 7/2019 : Specifies certain services to be taxed under
    Reverse Charge Mechanism (RCM) for real estate sector. TDR by a person to
    Promoter, Long term Lease, liability is on Promoter.
4. Notification No:6/2019 : Specifies special procedures under Section
   148 for those who receive TDR etc on or after 01-04-2019.
5. Notification No:6/2019 : Notifies CGST rate (9%) of certain goods (other
   than Capital Goods and Cement) real estate sector.

GST (Amendment) Act, 2018
Procedure for registration:
a person having multiple places of business in a State or
Union territory may be granted a separate registration for
each such place of business. (Optional) Section 25.

Cancellation of registration:
Amended so as to provide for temporary suspension of
registration while the cancellation of registration is under
process. Section 29.

Credit and debit notes:
Amended so as to allow registered persons to issue
consolidated credit or debit notes in respect of multiple
invoices issued in a Financial Year. Section 34.

GST (Amendment) Act, 2018

Accounts and other records:
Amended so as to provide that any Department of the Central or State
Government or local authority which is subject to audit by the
Comptroller and Auditor-General of India need not get their books of
account audited by any Chartered Accountant or Cost Accountant.
Section 35

Goods and services tax practitioners:
Amended so as to allow Goods and Services Tax Practitioners to
perform other functions such as filing the refund claim, filing the
application for cancellation of registration, etc.
Earlier it was only for Filing of Returns
Time limit for passing the examination by a GSTP extended to eighteen
months from One year (Extra) for those who have registered before
1st July 2018 and for others it is 24 months from Date of Registration.

GST PRACTITONERS

     Guidelines for Post-Examination Representation
1. Any candidate, not satisfied with his result may send a representation
   to Assistant / Deputy Director (Examination), NACIN, Faridabad,
   clearly specifying the reasons of representation, which should reach
   NACIN within seven days of declaration of results.
2. If the representation requires re-evaluation, it shall be entertained
   only in cases where a candidate has failed the examination.
3. In such a case, the representation shall be sent along with re-
   evaluation fee in the form of a Demand draft of Rs. 200/- in favour of
   PAO, CBEC, payable at New Delhi.
4.   NACIN shall inform result of representation to the candidate,
     preferably within 15 days of receipt of the representation.

ITC Utilisation – Sequence &
                             Restrictions

 Fungability of cross Utilization is the Key
 Credit utilization was as follows:

                              Allowed for Payment of
   Credit of:
                       IGST              CGST               SGST
      IGST             (1)              (2)                (3)
      CGST             (2)              (1)
      SGST             (2)                                  (1)
    *The numbers represent the order of utilization of credit
 Expectation: Accumulation of unutilized GST credits would be
  avoided except in cases of exports

                                                       10

GST (Amendment) Act, 2018

Utilisation of input tax credit subject to certain conditions:
Seeks to specify that a taxpayer would be able to utilise the ITC on
account of central tax, State tax or Union territory tax only after
exhausting all the credit on account of IGST available to him
towards payment of 1. IGST, 2. CGST & thereafter 3. SGST /
UTGST. Section 49A

Empowers the Government to prescribe any specific order of
utilisation of ITC of any of the taxes for the payment of any
tax. Section 49 B

To satisfy the obligation under Section 17(2) of the IGST Act
2017 as quickly as possible.

ITC Utilisation – Sequence &
                                    Restrictions
 For e.g. Say supplier for February 2019 has following data for filing GST 3B

   OUTPUT TAX LIABILITY                          ITC AVAILABLE

 IGST              Rs.200               IGST                  300
 CGST              Rs.200               CGST                  200
 SGST              Rs.200
                                        SGST                  100
 Total             Rs.600               Total                 600
        Order of UTILIZATION                     Order of UTILIZATION
        BEFORE 01-02-2019                         AFTER 01-02-2019
IGST         Rs.200                    IGST     Rs.200
CGST         Rs.200                    CGST     IGST Rs. 100 + CGST Rs.100
SGST         Rs.100 + IGST 100         SGST     Rs.100 + Cash Rs.100
Total        Rs.600                    Total    Rs.600

GST (Amendment) Act, 2018
Refund of tax:
Amended to provide that the principle of unjust enrichment
will apply in case of a refund claim arising out of supplies of goods
or services or both made to a Special Economic Zone developer or
unit, and to allow receipt of payment in Indian rupees, where
permitted, by the Reserve Bank of India in case of export of services.
Section 54. / Rule 96A(A)(1)(b) / Section 2(6)(iv) of IGST Act, 2017 (Export of Services)

Note: replaced the word ‘zero-rate supplies’ with ‘exports’

Relevant Date:-
In the case of Services exported out of India where a refund of tax
paid is available in respect of services themselves or, as the case may
be, the inputs or input services used in such services, the relevant
date is the due date for furnishing of return under section 39 for the
period in which such claim for refund arises; (Earlier – Revenue recognition)

GST (Amendment) Act, 2018
Recovery of tax:
Amendment enables recovery of Arrears of Tax to be made from
“Distinct Persons” registered in different States or Union
territories in order to ensure a speedy recovery from other
establishments of the registered person by inserting following
explanation:

Explanation:- For the purposes of this section, the word person shall
include “distinct persons” as referred to in sub-section (4) or, as the case
may be, sub-section (5) of section 25. i.e, one or more Registrations /
Establishments

Section 79.

“Distinct Person” is defined under Sec.8(2) (Expln.) of IGST Act, 2017.
(in India or outside India / in one or more states)

GST (Amendment) Act, 2018
Appeals to Appellate Authority: (10%)
Amended Authority”, in order to specify twenty-five crore rupees as
the upper limit of the amount of pre-deposit payable for the filing of
appeal before the Appellate Authority. Section 107.

Appeals to Appellate Tribunal: (20%)
Amended in order to specify fifty crore rupees as the upper limit of
the amount of pre-deposit payable for the filing of appeal before the
Appellate Tribunal. Section 112.

Detention, seizure and release of goods and conveyances in transit:

Amended in order to increase the time limit from 7 days to 14 days to
pay the Tax amount before which proceedings shall be initiated.

Replaced sub-section(6) of Section 129:

GST (Amendment) Act, 2018
Job work procedure:

Amended in order to empower the Commissioner to extend the time
limit for return of inputs and capital goods sent on job work, up to a
period of one year and two years, respectively.

Inputs         :- Normal Period is One year - Extendable by one more year

Capital Goods :- Normal Period is Three years-Extendable by Two more years

Section 143.

GST (Amendment) Act, 2018
                     SCHEDULE III of CGST Act 2017:

“Activities or transactions which shall be treated neither as a supply
                   of goods nor a supply of services”.
Newly inserted Provisions:
Supply of goods from a place in the non-taxable territory to another place in
the non-taxable territory without such goods entering into India.

Supply of warehoused goods to any person before clearance for home
consumption;
Supply of goods by the consignee to any other person, by endorsement of
documents of title to the goods, after the goods have been dispatched from the
port of origin located outside India but before clearance for home
consumption.”;

Newly inserted explanation 2:
“warehoused goods” shall have the same meaning as assigned to it in the Customs
Act, 1962.’

GST (Amendment) Act, 2018
                             IGST ACT 2017

Place of supply of services where the location of supplier and
recipient is in India:
Amended to provide that if the transportation of goods is to a place
outside India, the place of supply shall be the place of destination of
such goods; Section 12. (8) vis-à-vis 13(9).

Place of supply of services where the location of supplier or location
of the recipient is outside India: (Jobbing)

Provisions of Section 13(1)/(3)(a) Amended and shall not apply in the case of
services supplied in respect of goods which are temporarily imported into India
for repairs or for any other treatment or process and are exported after such
repairs or treatment or process without being put to any use in India, other
than that which is required for such repairs or treatment or process;
Section 13.

CHANGES MADE IN E-WAY BILL
New Changes proposed in GST E-Way Bill: with effect from
                    25-03-2019
1.Now E-waybill system is being enabled to auto calculate the route
distance for movement of goods, based on the Postal PIN codes of
source and destination locations.

2. One E-way Bill policy is followed, Now Blocking of generation of
multiple E-Way Bills on one Invoice/document

3. Now , validity of E Way Bill can be extended in case Consignment
when in Transit

4. Blocking of Interstate Transactions for Composition dealers

CHANGES MADE IN E-WAY BILL
                   1. AUTO CALCULATE DISTANCE
   Enabled to auto calculate the route distance for movement of goods, based
    on the Postal PIN codes of source and destination locations.
   User is allowed to enter the actual distance as per his movement of goods.
   However, it will be limited to 10% more than the displayed distance for
    entry.
   In case, the source PIN and destination PIN are same, the user can enter up
    to a maximum of 100KMs only.
   If the PIN entered is incorrect, the system would alert the user.
   However, he can continue entering the distance. Further, these e-waybills
    having INVALID PIN codes are flagged for review by the department.
   Route distance calculation between source and destination uses the data
    from various electronic sources.
   A proprietary logic is then used for approximating the distance between
    two postal pin distances

CHANGES MADE IN E-WAY BILL

       2. Blocking of generation of multiple E-Way Bills

 Not to allow generation of multiple e-way bills based on one invoice,
  by any party – consignor, consignee and transporter.

 Once E-way Bill is generated with an invoice number, then none of the
  parties – consignor, consignee or transporter – can generate the E-
  Way Bill with the same invoice number.

 One Invoice, One E-way Bill policy is followed.

CHANGES MADE IN E-WAY BILL
3. Extension of E-Way Bill in case Consignment is in Transit
 The transit means the goods could be on Road or in Warehouse.
 This facility is being incorporated in the next version.
 During the extension of the e-way bill, the user is prompted to
  answer whether the Consignment is in Transit or in Movement.
 On selection of In Transit, the address details of the transit place
  need to be provided.
 On selection of In Movement the system will prompt the user to enter
  the Place and Vehicle details from where the extension is required.
 In both these scenarios, the destination PIN will be considered from
  the PART-A of the E-way Bill for calculation of distance for movement
  and validity date.

CHANGES MADE IN E-WAY BILL
 4. Blocking of Interstate Transactions for Composition dealers
 The composition tax payers are not supposed to do
  Interstate transactions.
 Hence next version will not allow generation of e-way bill
  for inter-state movement, if the supplier is composition
  tax payer.
 Also, the supplies of composition tax payers will not be
  allowed to enter any of the taxes under CGST or SGST for
  intrastate transactions.
 In case of Composition tax payer, document type of Tax
  Invoice will not be enabled.

Finally clarified no GST on TCS !!!

   For the purpose of determination of value of supply under GST,
   Tax collected at source (TCS) under the provisions of the Income
   Tax Act, 1961 would not be includible as it is an interim levy not
   having the character of tax.

   Earlier it was opined that the TCS collected under Income Tax Act
   1961 should form part of this value.

   Corrigendum to Circular No. 76/50/2018-GST dated 31st December, 2018 issued vide
   F.No. CBEC-20/16/04/2018-GST- Reg.The provisions Section 15(2) of CGST Act
   specifies that the value of supply for the purpose of calculating GST liabilities, shall
   include “any taxes “

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N24
                                                                                    arcotics (NACIN)

Transfer of ITC

                         DEATH OF SOLE PROPRIETOR
   In case of death of sole proprietor
          if the business is continued by any person being transferee or
           successor,
          the input tax credit which remains un-utilized in the electronic
           credit ledger
    is allowed to be transferred to the transferee.

   It shall be construed as transfer or change in the ownership of
   business for any reason ( Merger, Amalgamation…Sec:41(1) and
   claimed through FORM GST ITC-02

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N25
                                                                                    arcotics (NACIN)

Clarification on Value
                               Sales Promotion Schemes
    Sl.N          Type of Supply                     Taxability                     ITC
     o

    1      FREE SAMPLE AND GIFTS              No Consideration – Not       ITC – Taken shall be
           (Pharma)                           Supply at all                reversed 17(5)

    2      Buy one Get one Free               Taxable Supply                ITC – Taken is
           (Consumer Goods)                   includes cost of Free         available
                                              materials.
                                              Composite – Mixed ?

    3      a) Buy more Save More             Allowed                        ITC – Taken is
           b) Volume Discount                                               available

    4      Secondary Discounts /              Consideration – cannot be ITC – Taken shall be
           Redeem Coupon                      excluded                  available)

                          Circular No: 92/11/2018-GST, dt: 07-03-2019

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N26
                                                                                    arcotics (NACIN)

TIME LINES FOR FILING RETURNS

  The the time limit for furnishing the details of outward supplies in FORM
  GSTR-1 under the Central Goods and Services Tax Rules, 2017,
  by such class of registered persons having aggregate turnover of more than 1.5 crore
  rupees in the preceding financial year or the current financial year, for each of the
  months from April, 2019 to June, 2019 has been notified vide Notification No.
  12/2019- CT, to be till the eleventh        day (11th)      of the month succeeding such
  month

  and
  For those registered persons having aggregate turnover of up to 1.5 crore
  rupees in the preceding financial year or the current financial year, the time
  line for filing Form GSTR-1 for the period from April 2019 to June 2019 has
  been notified vide Notification No. 11/2019 CT as 31st July 2019.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N27
                                                                                    arcotics (NACIN)

TIME LINES FOR FILING RETURNS

    Further vide Notification No.13 /2019, CT the return in FORM GSTR-3B for each
    of the months from April, 2019 to June, 2019, shall be furnished electronically
    through the common portal, on or before the twentieth day (20th) of the month
    succeeding such month.

    On the aspect of Payment of taxes for discharge of tax liability as declared under
    FORM GSTR-3B, every registered person furnishing the return in FORM GSTR-3B of
    the said rules shall, subject to the provisions of section 49 of the said Act, discharge
    his liability towards tax, interest, penalty, fees or any other amount payable under
    the said Act by debiting the electronic cash ledger or electronic credit ledger, as the
               not later than the last date, specified (20th of
    case may be,
    succeeding) on which he is required to furnish the said return.

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N28
                                                                                    arcotics (NACIN)

New Functionalities in Portal

        Form GSTR-9, 9A Annual Return for 2017-18 to be
            filed by normal taxpayer / Comp. Optee
    Facility to file Annual Return by normal taxpayers in Form GSTR
    9,9A for Financial Year 2017-18, is now available at GST Portal.
    The FAQs and Manual for Form GSTR-9/9A is available at link as
    given below
    User Manual:
     https://tutorial.gst.gov.in/userguide/returns/index.htm#t=Manual_gstr9.htm

    FAQs:
    https://tutorial.gst.gov.in/userguide/returns/index.htm#t =FAQs_gstr9.htm
        APIs for Form GSTR 9 has been released for CBIC/Model I States

N a t i o n a l A c a d e m y o f C u s t o m s , I n d i r e c t T a x e s a n d N29
                                                                                    arcotics (NACIN)

Notification No. 12/2017- Central Tax (Rate)

                   Exemption Notification for Services.

Entry no. 18
Services by way of transportation of goods     by road except the services of a goods
transport agency is exempt from GST.

Entry no. 22
Services by way of giving on hire to a goods transport agency, a means of transportation
of goods is exempt from GST.

Conclusion:
All other Market Players of Road Transporters except GTA are
outside GST Net.

Registration Requirement for GTA

Notification No. 5/2017- Central Tax dated 19/06/2017

'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), the Central Government hereby
specifies the persons who are only engaged in making supplies of taxable goods or
services or both, the total tax on which is liable to be paid on reverse charge basis by the
recipient of such goods or services or both under sub-section (3) of section 9 of the said
Act as the category of persons exempted from obtaining registration under the aforesaid
Act’

Conclusion :
GTA only making supplies which is liable to be taxed on Reverse
Charge basis is exempted from Registration.

Notification No. 13/2017- Central Tax (Rate)

                         Reverse Charge Notification
Sl     Service Description              Service Service Recipient (Person Liable to
no.                                     Provider Pay GST on Reverse Charge basis)
2.     Services provided or agreed to be GTA     (a) any registered factory,
       provided by a Goods Transport             (b) any registered society,
       Agency       in     respect     of        (c)any registered co-operative
       transportation of goods by road           society,
                                                 (d)Any         person       registered
                                                 under CGST/ SGST/ UTGST Act,
                                                 (e) Any registered body corporate,
                                                 (f)Any registered or not partnership
                                                 firm, AOP
                                                 (g) Casual Taxable Person
                                                 Located in Taxable Territory

Notification No. 13/2017- Central Tax (Rate)

Explanation
The person who pays or is liable to pay freight for the
transportation of goods by road in goods carriage, located in the
taxable territory shall be treated as the person who receives the
service for the purpose of this notification.
Conclusion
Advance Freight / Normal Freight :- Consignor – Service Recipient to pay Freight

If Service is provided to Specified Recipient : Recipient will have to pay Tax on Reverse
charge basis.
If Service is provided to other than Specified Recipient : GTA will have to pay Tax on
forward charge basis.

Notification no. 22/2017- Central Tax (Rate)

• Amends Notification No.13/2017- Central Tax (Rate), dated the 28th June, 2017

• Amendment :
  Services by GTA in relation to goods transportation are covered
  under reverse charge only if GTA has not paid Central tax at the
  rate of 6%. (Effective GST 12%)

• Conclusion :
  If GTA has charged 12% GST, No RCM Liability in the hands of
  Recipient; Else Liability to be decided as per Notification No.
  13/2017-Central Tax (Rate)

Notification No. 20/2017-Central Tax (Rate)

      TWO options as mentioned below are now given to GTA
                                                            ITC in the
                                                     GST
Sr No Conditions                                            hands   of
                                                     Rate
                                                            GTA
      Credit of input tax charged on goods and
      services used in supplying the service has
1                                                    5%     No ITC
      not been taken by GTA

      Goods transport agency opting to pay central
                                                            Full ITC on
      tax @ 6% under this entry shall, henceforth,
                                                            Input,    Input
2     be liable to pay central tax @ 6% on all the   12%
                                                            Services    and
      services of GTA supplied by it.
                                                            Capital Goods

                   Pick and Choose not allowed.

Blocked Credits – Section 17(5) CGST

Notwithstanding anything contained in sub-section (1) of section 16 and
subsection (1) of section 18, input tax credit shall not be available in respect of
the following, namely:—
   (a) motor vehicles and other conveyances except when they are used––
   – (i) for making the following taxable supplies, namely:—
            (A) further supply of such vehicles or conveyances ; or
            (B) transportation of passengers; or
            (C) imparting training on driving, flying, navigating such vehicles or
                conveyances;
       (ii) for transportation of goods;

  ITC is not available for Motor vehicles used to transport persons,
  having a seating capacity of less than or equal to 13 persons (including
  the driver).

Place of Supply for GTA services

• Section 12(8) of IGST
• The place of supply of services by way of transportation of goods,
  including by mail or courier to,––
• (a) a registered person, shall be the location of such person;
• (b) a person other than a registered person, shall be the location at
  which such goods are handed over for their transportation.

State from which Movement of Material commence and state in which
movement of material terminates is immaterial for determination of
place of supply.

Location of supplier of Service and Location of Recipient of Service is
very dynamic concept and throws unique challenge in case of GTA.

Transportation of Goods by Road
                     HSN - 9965

                                         Whether
S.
               Particulars            taxable or not          Tax rate
No.
                                       under GST?

1.    By rail other than container.   Taxable          5% without ITC on
                                                       input service.
2.    By rail in container            Yes              12% with ITC on input
                                                       service.
3.    By Goods Transport Agency       Yes              5% with NO ITC.

4.    Services of goods by courier Yes                 18% with ITC credit.
      agency

5.    Other than Rail, GTA and Exempt Service          Exempt Service
      courier agency.
6.    Multimodal Transportation       Yes              12% with ITC

Some Situations ?

A Single Truck owner carrying Goods booked for Agent;
Aggregate Turnover > Rs. 20 Lakhs ?
 NOT Liable for Registration as the activity is exempted
  under Notification No:12/2017 CTR, dt:28-06-17

A truck Supplier / Broker. Get orders for Truck owners.
Brokerage is paid by Truck owners.
 Liable for Registration if the aggregate amount      of
  Commission / Brokerage received > Rs. 20 lakhs

                   Prepared by R. SRIVATSAN, NACEN,
                                                       39
                                Chennai

Some Situations ?
Treatment of intermediary / Ancillary services ?
 Loading/Unloading, Packing/ Unpacking transhipment /
  Temporary warehousing are to be treated as Composite
  Supply of GST service and shall be taxed along with GTA
  Service.

Undertakes only Transportation of Goods by Road and the
Aggregate Turnover Exceeds Rs.20 Lakhs. Registration ?
 Not Liable for Registration if he undertakes only GTA
  Service. (RCM). But Even any one Taxable Supply of Goods
  / Service will become taxable thereafter.

                     Prepared by R. SRIVATSAN, NACEN,
                                                        40
                                  Chennai

Some Situations ?
Sale of Old Vehicles, Tyres, Scrap Material after completion of
useful life on which no ITC is availed. Does it amount to
Taxable Supply ?
 Sec. 7 includes all forms of Supply. Supply or disposal of
  these items for a consideration will attract GST regardless
  of ITC availment.

As a Transporter, is it required to maintain records of my
supply of Services though not Taxable ?
 Yes, Section 35(2) read with Rule 56 it is required to
  maintain the records of goods transported, delivered and
  Goods stored in transit along with GSTIN of the registered
  Consigner and Consignee

                     Prepared by R. SRIVATSAN, NACEN,
                                                             41
                                  Chennai

Enrollment of Transporters.
Notification no. 5/2017 (CT) exempts majority of GTA from Registration (subject to
condition) .
Section 35 (2) CGST Act.
  Every owner or operator of warehouse or godown or any other place used for storage of
  goods and every transporter, irrespective of whether he is a registered person or not,
  shall maintain records of the consigner, consignee and other relevant details of the
  goods in such manner as may be prescribed.

Rule 58(1) CGST Rules : Enrollment of Transporters
  Every person required to maintain records and accounts in accordance with the
  provisions of sub-section (2) of section 35, if not already registered under the Act, shall
  submit the details regarding his business electronically on the common portal in
  FORM GST ENR-01, and, upon validation of the details furnished, a unique enrolment
  number shall be generated and communicated to the said person.

            In absence of Registration Can they be supervised ?

Obligation casted upon Transporter in GST

 Transporter should be carrying the Tax Invoice [DUPLICATE COPY] or Challan
  issued in lieu of invoice and e-way bill.

 Transporter can be surveyed in case the proper officer has a reason to believe
  that he is involved in some type of malpractices. (Sec 67(1)(b))

 GTA shall be liable to pay a penalty of Ten Thousand Rupees (Rs. 10,000) or an
  amount equivalent to the tax evaded whichever is higher if GTA
  • transports any taxable goods without the cover of documents as may be
    specified in this behalf
  • supplies, transports or stores any goods which he has reasons to believe are
    liable to confiscation under this Act

Obligation casted upon Transporter in GST

129. (1) CGST : Detention and Seizure of Vehicle
      Notwithstanding anything contained in this Act, where any
      person transports any goods or stores any goods while they
      are in transit in contravention of the provisions of this Act or
      the rules made thereunder, all such goods and conveyance
      used as a means of transport for carrying the said goods and
      documents relating to such goods and conveyance shall be
      liable to detention or seizure and after detention or seizure,
      shall be released only after …..

similarly Section 130 CGST talks about Confiscation of Vehicle
  M/s. Jignesh Kansara & Associates

Benefits for Transport Sector

1. The traders need not visit tax offices anymore.
2. Average waiting time at check-post reduces drastically
3. Scope for illegitimacy eliminated in office or at check-posts.
4. Self-policing by traders. A trader while uploading gives the
   identification of the buying / trader who also has to account the
   transaction.
5. Environment friendly – nearly 50 tons of paper saved per day.
6. An accurate database created-useful for tax analysis.
7. Complete Transparency of Transaction
8. Invasive inspections are now eliminated completely.

9.   The sector has witnessed a 20% increase in efficiency

10. It has helped speed up the movement of consignments reducing
    idling time

Questions

            46

G. S. Bhullar & Co.
Chartered Accountants