Recommendations made during the 28th GST Council Meet: Based on Official Press Release

The GST Council in its 28^thmeeting held here today has recommended certain amendments in the CGST Act, IGST Act, UTGST Act and the GST (Compensation to States) Act.

The major recommendations are as detailed below:

1. Upper limit of turnover for opting for composition scheme to be raised from `1 crore to `1.5 crore. Present limit of turnover can now be raised on the recommendations of the Council.
2. Composition dealers to be allowed to supply services (other than restaurant services), for upto a value not exceeding 10% of turnover in the preceding financial year, or `5 lakhs, whichever is higher.
3. Levy of GST on reverse charge mechanism on receipt of supplies from unregistered suppliers, to be applicable to only specified goods in case of certain notified classes of registered persons, on the recommendations of the GST Council.
4. The threshold exemption limit for registration in the States of Assam, Arunachal Pradesh, Himachal Pradesh, Meghalaya, Sikkim and Uttarakhand to be increased to `20 Lakhs from `10 Lakhs.
5. Taxpayers may opt for multiple registrations within a State/Union territory in respect of multiple places of business located within the same State/Union territory.
6. Mandatory registration is required for only those e-commerce operators who are required to collect tax at source.
7. Registration to remain temporarily suspended while cancellation of registration is under process, so that the taxpayer is relieved of continued compliance under the law.
8. The following transactions to be treated as no supply (no tax payable) under Schedule III:

§  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; and

§  Supply of goods in case of high sea sales.

9. Scope of input tax credit is being widened, and it would now be made available in respect of the following:

§  Most of the activities or transactions specified in Schedule III;

§  Motor vehicles for transportation of persons having seating capacity of more than thirteen (including driver), vessels and aircraft;

§  Motor vehicles for transportation of money for or by a banking company or financial institution;

§  Services of general insurance, repair and maintenance in respect of motor vehicles, vessels and aircraft on which credit is available; and

§  Goods or services which are obligatory for an employer to provide to its employees, under any law for the time being in force.

10. In case the recipient fails to pay the due amount to the supplier within 180 days from the date of issue of invoice, the input tax credit availed by the recipient will be reversed, but liability to pay interest is being done away with.
11. Registered persons may issue consolidated credit/debit notes in respect of multiple invoices issued in a Financial Year.
12. Amount of pre-deposit payable for filing of appeal before the Appellate Authority and the Appellate Tribunal to be capped at `25 Crores and `50 Crores, respectively.
13. Commissioner to be empowered to extend the time limit for return of inputs and capital sent on job work, upto a period of one year and two years, respectively.
14. Supply of services to qualify as exports, even if payment is received in Indian Rupees, where permitted by the RBI.
15. Place of supply in case of job work of any treatment or process done on goods temporarily imported into India and then exported without putting them to any other use in India, to be outside India.
16. Recovery can be made from distinct persons, even if present in different State/Union territories.
17. The order of cross-utilisation of input tax credit is being rationalised.

These amendments will now be placed before the Parliament and the legislature of State and Union territories with legislatures for carrying out the amendments in the respective GST Acts.

Press Release:

• GST RATE ON GOODS  https://drive.google.com/file/d/1Y6hVAg9F3rRaNzD3rr3AL8ZrT_lAT5DV/view?usp=sharing

• GST RATE ON SERVICES  https://drive.google.com/file/d/1gatR8PnnjW0waYcfFl18wbFKc4kD2nHx/view?usp=sharing

• SIMPLIFIED GST RETURN https://drive.google.com/file/d/1Wfz7VY0-iiPiLGePN7n0IA8z8vFDIC71/view?usp=sharing

• ON OPENING OF MIGRATION WINDOW - for taxpayers, who received provisional IDs but could not complete the migration process. https://drive.google.com/open?id=1SzH85rHedR7VIMDoqpoR3x1JrP9w5Nq2

E-Way Bill System

Under GST, transporters should carry an e-Way Bill when moving goods from one place to another. Since it is a new rule introduced under GST, it is necessary for all consignors/ consignees/ transporters to be aware of the required compliance.

E-Way Bill

E-Way Bill is an electronic way bill for movement of goods which can be generated on the e-Way Bill Portal. Transport of goods of more than `50,000 in value cannot be made by a registered person without an e-way bill.

E-way bill can also be managed through web portal and/or SMS.

When an e-way bill is generated a unique e-way bill number (EBN) is allocated and is available to the supplier, recipient, and the transporter.

E-way bill will be generated when there is a movement of goods of value more than `50,000 –

• In relation to a ‘supply’
• For reasons other than a ‘supply’ (e.g. goods return)
• Due to inward ‘supply’ from an unregistered person

For this purpose, a supply may be either of the following:

• A supply made for a consideration (payment) in the course of business
• A supply made for a consideration (payment) which may not be in the course of business
• A supply without consideration (without payment)In simpler terms,  the term ‘supply’ usually means a:

1. Sale – sale of goods and payment made
2. Transfer – branch transfers for instance
3. Barter/Exchange – where the payment is by goods instead of in money

Therefore, E-Way Bills must be generated on the common portal for all above types of movements.

 When E-Way bill is not required

In the following cases it is not necessary to generate E-Way Bill:

1. The mode of transport is non-motor vehicle
2. Goods transported from port, airport, air-cargo complex or land customs station to Inland Container Depot (ICD) or Container Freight Station (CFS) for clearance by Customs.
3. The distance between the consigner or consignee and the transporter is less than 10 Kms and transport is within the same state.
4. Transport of specified goods (List of Goods)*.

 Who is required to generate an E-Way Bill

• Registered Person – E-way bill must be generated when there is a movement of goods of more than `50,000 in value to or from a Registered Person. A Registered person or the transporter may choose to generate and carry e-way bill even if the value of goods is less than `50,000.
• Unregistered Persons – Unregistered persons are also required to generate  e-Way Bill. However, where a supply is made by an unregistered person to a registered person, the receiver will have to ensure all the compliances are met as if they were the supplier. 
• Transporter – Transporters carrying goods by road, air, rail, etc. also need to generate e-Way Bill if the supplier has not generated an e-Way Bill.

Who	When	Part	Form
Every Registered person under GST	Before movement of goods	Fill Part A	Form GST EWB-01
Registered person is consignor or consignee (mode of transport may be owned or hired) OR is recipient of goods	Before movement of goods	Fill Part B	Form GST EWB-01
Registered person is consignor or consignee  and goods are handed over to transporter of goods	Before movement of goods	Fill Part B	The registered person shall furnish the information relating to the transporter in Part B of FORM GST EWB-01
Transporter of goods	Before movement of goods		Generate e-way bill on basis of information shared by the registered person in Part A of FORM GST EWB-01
An unregistered person under GST and recipient is registered	Compliance to be done by Recipient as if he is the Supplier.		1. If the goods are transported for a distance of ten kilometers or less, within the same State/Union territory from the place of business of the consignor to the place of business of the transporter for further transportation, the supplier or the transporter may not furnish the details of conveyance in Part B of FORM GST EWB-01. 2. If supply is made by air, ship or railways, then the information in Part A of FORM GST EWB-01 has to be filled in by the consignor or the recipient

Note: If a transporter is transporting multiple consignments in a single conveyance, they can use the form GST EWB-02 to produce a consolidated e-way bill, by providing the e-way bill numbers of each consignment.

If both the consignor and the consignee have not created an e-way bill, then the transporter can do so by filling out PART A of FORM GST EWB-01 on the basis of the invoice/bill of supply/delivery challan given to them.

Validity of E-Way Bill

An e-way bill is valid for periods as listed below, which is based on the distance travelled by the goods. Validity is calculated from the date and time of generation of e-way bill-

Distance	Validity of EWB
Less Than 100 Kms	1 Day
For every additional 100 Kms or part thereof	additional 1 Day

Latest Update on e-Way Bill

1. E way bill rules will be rolled out on a trial basis from 16th Jan 2018

2. The e-way bill rules will be implemented in India from 1st February 2018

3. The states can opt to follow the e-way bill system anytime before 1st June 2018

4. From 1st June 2018 e-way bill rules will uniformly apply to all states.

E-Way Bill System Manual: https://drive.google.com/open?id=1kbtf3XG33965G0ObdLJDx9I4VDFfp5_w

Source:National Informatics Centre;New Delhi