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Faster, easier and secure gateway to e-file income tax return

Various Notifications, News and Announcements for GST in India

Many amendments have been proposed in the GST bill since it was passed in Rajya Sabha on 3rd August 2016. Rajya Sabha passed the bill introducing GST in the 122nd Amendment of the Constitution.

The various notifications issued by Central Government for GST are

  • Notification 3 & 8/2017- Composition Scheme: The initial turnover limit under GST composition scheme was Rs. 50 Lakhs, but in a meeting held on 11th June 2017, this limit was increased to Rs. 75 Lakhs for all eligible registered taxpayers.
  • Notification 5/2017 - Reverse Charge: Suppliers of goods and services on which reverse charge is applied will be exempted from registering under GST registration.
  • Notification 1 & 9/2017: This notification was issued on 19th and 28th June, after which most of the CGST Act is now in force. The government has given relaxation under TDS and TCS provisions for some time to give some more relief to the e-commerce sellers. Under this, Section 51 for TDS and Section 52 for TCS are not applicable. Section 42 (9) and Section 43(9) are two clauses which state that if input tax credit is increased or output tax liability is decreased due to credit note or debit note or there is a mismatch of invoices reconciliation then such amount shall be refunded by crediting electronic ledger. This amendment will not be applicable right away as there will not be any reconciliation for 2 months.
  • Notification 10/2017 - Rules: Central Board of Excise and Customs (CBEC) issued various rules on refunds, transition, and valuation etc. in a 247-page document.
  • Notification 12/2017 - HSN (Harmonized System Nomenclature) codes: Every registered individual whose turnover is more than is Rs. 1.5 Crores must mention the HSN codes in each invoice. Many digits in the invoice depends upon the annual turnover in the preceding financial year.
Turnover in Preceding Financial Year No. of Digits
Up to Rs. 1.5 crore Nil
More than Rs. 1.5 crore and less than Rs. 5 crores. 2 Digits
More than Rs. 5 crores. 4 Digits

This notification has been effective from 1st July 2017. All invoices from 1st July must be GST compliant and will have details of HSN codes.

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  • Notification 13/2017 - Rates of Interest: The rates of interest are same as they were earlier in the act. This notification only ratifies the interest rates. This notification was effective from 1st July 2017.
Sections The rate of Interest p.a.
Failure to pay tax under Section 50(1) 18%
Less tax paid under Section 50(3) 24%
Interest on refunds withheld in an appeal given later under Section 54(12) 6%
Interest on delayed refunds under Section 56 6%
Interest on refunds ordered in an appeal under Provision to section 56 9%
  • Notification 4/2017- For Common Portal: Under this notification, the common portal is mentioned for managing goods and services tax network.
  • Notification 6&11/2017: Various modes of verification have been defined under this notification. The modes of verification are
    • Electronic Verification Code (EVC) generated on the common portal.
    • Electronic Verification Code (EVC) generated through Net Banking login on the common portal.
    • Aadhar based Electronic Verification Code (EVC).
  • Notification regarding Central Tax Rate: The notification regarding Central Tax Rate was issued on 28th June 2017. Amendments under this notification are as follows
    • The goods which were exempted from CGST will still be exempted. There will be no change in the exempted list of goods.
    • Under this, most of the goods will be kept at the same rates as announced by the GST council earlier. But precious stones or non-industrial unworked diamond will be charged CGST at the rate of 0.125%.
    • Under GST law, a person who is liable to collect Tax Deducted at Source (TDS) supplying interstate goods or services to an unregistered person would be exempted from GST.
    • GST on oil, gas, petroleum, and coal will be charged at the rate of 2.5%.
    • Under GST, reverse charge will be applicable on items like cashew nuts, bidi wrapper leaves, silk yarn, tobacco leaves.
    • If the tax on output will be lower than the tax on inputs for certain goods related to textile and railways, the refund on the unutilized ITC would not be provided.
    • The supply of goods by Canteen Stores Department (CSD) to unit-run canteens and authorized customers. Supply of goods by the unit run canteens to the authorized customers.
    • Tax paid on inward supplies of goods by Canteen Stores Department (CSD) for further supply to run canteens and for authorized customers can be claimed as a refund under GST.
    • Second-hand goods supplied by a registered person to an unregistered person who deals in selling second-hand goods would be exempted from CGST.
  • Notification 3/2017 - Sections in force: Under this notification, the central government has notified the provisions of section 4 to 13, 16 to 19, 21, 23 to 25 of the Integrated Goods and Service Act (IGST), 2017 has come into force from 1st July 2017.
  • Notification 4/2017 - Provisions of CGST will be applicable for IGST : The IGST rules have been notified to become effective retrospectively from 22nd June 2017.

Notifications regarding Integrated Tax Rates

This notification describes the cases where the e-commerce operator will pay Integrated Goods and Service Act (IGST). E-commerce operator will pay the IGST for the following services:

  • In the case of transportation of passengers by a radio- taxi, maxi cab, motor cab, motorcycle etc.
  • If they provide accommodation services in hotels, inns or any other commercial place which is meant for the residential purpose. For ex: If a hotel is registered with OYO Rooms under GST, then OYO Rooms will be liable to pay the IGST. If the individual supplies the services of hotel himself/herself and is registered under GST, then the person will be liable to pay IGST.
Tax Rates

This notification has been effective from 1st July 2107.

  • Notification No- 4/2017 - Goods on which reverse charge applies: A list is issued by CBEC in which reverse charge is applied. IGST will be payable on a reverse charge basis by the recipient of intrastate goods supply. All the provisions will apply to such recipient.
  • Notification 12/2017 - No Input Tax Credit (ITC) for construction: No Income Tax Credit shall be allowed for IGST in the construction of a building, complex etc. Income Tax Credit shall be allowed only in cases where the entire consideration has been received after the issuance of completion certificate or after its first occupation, whichever is earlier.
  • Notification 10/2017 - Reverse charge: This notification is same as issued under CGST Act. Under this, a list of services on which reverse charge is applicable is issued.
  • Notification 6&7/2017 - Army canteens: The following goods are exempted from IGST and CGST, to promote public interest:
    • Goods supplied by the Canteen Store Department to the Unit Run Canteens.
    • Goods supplied by the Canteen Store Department to the authorized customers.

    The CSD can claim a refund of 50% on IGST for goods supplied to the Unit Run Canteens or to the authorized customers.

  • Notification 5/2017 - inverted rate structure: If ITC accumulated has a higher rate of tax of input from the rate of tax on the output goods, refund of unutilized ITC will not be allowed. Due to the imposition of high tax on the imported raw materials, it compels the manufacturers to raise prices. On the other hand, less rate of tax is imposed on the foreign finished goods or the finished goods imported.
    Goods manufactured by domestic industry become uncompetitive against foreign finished goods. The goods on which this notification applies are woven fabrics of cotton, silk waste, rail locomotives which are powered by an external source of electricity or by electric accumulators etc.
  • Notification 11/2017 - Panchayat Services: Constitutional services of Panchayat will be kept away from GST regime.

GST News

  • Under GST, there will be 5%, 12%, 18% and 28% tax rates
  • Petroleum products like crude oil, natural gas, Aviation Turbine Fuel are not covered under GST.
  • Monthly Return must be filed under GST.
  • If the aggregate return of any individual is above Rs. 20 Lakhs, then the registration is mandatory for that individual.
  • If goods or services will be purchased from an unregistered supplier or dealer then GST will be paid via Reverse-Change Mechanism.
  • At the time of supplying goods or services, the supplier will have to issue the tax invoice to the customer. The invoice issued must contain all the necessary details as per law.
  • On interstate transactions, IGST will be levied. For intrastate transactions, CGST and SGST will be levied. For Union Territory Transactions, UTGST will be levied.
  • GST will apply at the time of supply, as GST is based on supply.
  • If the aggregate turnover of the taxpayer is less than Rs. 1.5 Crore then there is no need to mention HSN code of good on the invoice. If the turnover is more than Rs. 1.5 Crore but less than Rs. 5 Crores then two digits HSN code will be mentioned on the invoice and if this turnover is more than Rs. 5 Crores, then four digits HSN code will be mentioned on the invoice. If the goods are exported then 8 digits HSN codes will be mentioned on the invoice.