GST Updates March 2018

Central Government vide Notification No. 3/2018 Central Tax, dated 23.01.2018 amends Central Goods and Service Tax Rules, 2017 as under:

1. Under Rule 3(3A) a person who has been granted registration on a per provisional basis in case of migration from registration under existing law or who has been granted certificate of registration under CGST Act may opt to pay tax in composition scheme under section 10 with effect from the first day of the month in which he files an intimation in Form GST CMP-02. Such person shall further furnish the statement in Form GST ITC-3. The time period to furnish the statement in Form GST ITC-3 has been increased from ninety days to one hundred and eighty days from the day on which such person commences to pay tax under Section 10.
2. Rate of tax of the composition levy -The category of registered persons, eligible for composition levy under section 10 are as under:

1. In the Rule 20 proviso that no application for the cancellation of registration shall be considered in case of a taxable person, who has registered voluntarily, before the expiry of a period of one year from the effective date of registration has been omitted.
2. New Rule 31A has been inserted to prescribe value of supply under Section 15 in case of lottery, betting, gambling and horse racing  as under:

• The value of supply of lottery run by State Governments shall be deemed to be 100/112 of the face value of ticket or of the price as notified in the Official Gazette by the organizing State, whichever is higher.
• The value of supply of lottery authorised by State Governments shall be deemed to be 100/128 of the face value of ticket or of the price as notified in the Official Gazette by the organizing State, whichever is higher.
• The value of supply of actionable claim in the form of chance to win in betting, gambling or horse racing in a race club shall be 100% of the face value of the bet or the amount paid into the totalisator.

1. In Rule 43 an explanation has been replaced to clarify that the value of exempt supply for the purposes Rule 42 and Rule 43 shall exclude:

• the value of supply of services specified in the notification No. 42/2017-Integrated Tax (Rate), dated 27.10.2017;
• the value of services by way of accepting deposits, extending loans or advances in so far as the consideration is represented by way of interest or discount, except in case of a banking company or a financial institution including a non-banking financial company, engaged in supplying services by way of accepting deposits, extending loans or advances; and
• the value of supply of services by way of transportation of goods by a vessel from the customs station of clearance in India to a place outside India.

1. In Rule 54 sub-Rule (1A) has been inserted to prescribe content of invoice or debit-credit note to be issued by Input Service Distributors.
2. Rule 55A has been inserted to provide that the person-in-charge of the conveyance shall carry a copy of the tax invoice or the bill of supply issued in accordance with the provisions of rules 46, 46A or 49 in a case where such person is not required to carry an e-way bill under these rules.
3. In Rule 89 sub-Rule (4A) and (4B) has been substituted with effect from 23.10.2017.

• According to new sub-rule (4A) in the case of the supplier has availed the benefit of the Notification No. 48/2017-Central Tax dated 18.10.2017, refund of input tax credit, availed in respect of other inputs or input services used in making zero-rated supply of goods or services or both, shall be granted.
• According to new sub-rule (4B) in the case of the supplier has availed the benefit of the Notification No. 40/2017-Central Tax (Rate) dated the 23.10.2017 or Notification No. 41/2017-Integrated Tax (Rate) dated 23.10.2017 or Notification No. 78/2017- Customs dated the 13.10.2017 or Notification No. 79/2017-Customs dated 13.10.2017 or all of them, refund of input tax credit, availed in respect of inputs received under the said notifications for export of goods and the input tax credit availed in respect of other inputs or input services to the extent used in making such export of goods, shall be granted.

1. Rule 138 is being replaced by detail provisions relating to information to be furnished prior to commencement of movement of goods and generation of e-way bill.
2. Central Government vide Notification No. 11/2018 – Central Tax dated 02.02.2018 postpone the implementation provisions of Rule 138 relating to e-way bill.
3. Central Government vide Notification No. 04, 05, 06 and 07/2018 – Central Tax dated 23.01.2018 reduced the amount of late fee payable by any registered person as under: