Permission to display revised MRP due to Implementation of GST extends up to 31st December, 2017: Shri Ram Vilas Paswan

On account of implementation of GST w.e.f. 1st July, 2017, there may be instances where the retail sale price of a pre-packaged commodity is required to be changed. In this context, Hon’ble Minister for Consumer Affairs, Food & Public Distribution had allowed the manufacturers or packers or importers of pre-packaged commodities to declare the revised retail sale price (MRP) in addition to the existing retail sale price (MRP), for three months w.e.f. 1st July 2017 to 30th September, 2017. Declaration of the changed retail sale price (MRP) was allowed to be made by way of stamping or putting sticker or online printing, as the case may be.

Use of unexhausted packaging material/wrapper was also been allowed upto 30th September, 2017 after making the necessary corrections.

Considering the requests received to extend the permission for some more time it has been extended to display the revised MRP due to implementation of GST by way of stamping or putting sticker or online printing for a further period of three months, i.e. up to 31st December, 2017.

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AK
(Release ID :171269)

GST Tip – 348

The taxpayer can give a representation in FORM GST DRC-06 under Sub-section 9, Section 74 of CGST Act 2017 for the Show Cause Notice issued on the grounds for tax not paid or short paid or availed input tax credit wrongly or for refund issued erroneously.

GST Tip – 347

As per Sub-section 10 of Section 74 of the CGST Act 2017, the taxpayer can issue a notice for tax not paid or short paid or availed input tax credit wrongly or utilized input tax credit wrongly within 5 years from filing of annual return by the taxpayer and in case of refund issued erroneously, the notice has to be issued within 5 years from the date of issue of such refund.

Clarification on Payment of Service Tax in Transitional Period

Clarification on Payment of Service Tax in Transitional Period

Certain transitional issues arising with respect to payment of service tax after 30th June 2017 have been clarified by CBEC vide circular dated 28-9-2017.

It has been clarified that in cases where service was received before 1-7-2017 and payment for the value of the service was also made before 1-7-2017, but the service tax was paid by 5th /6th July 2017, details of credit should be indicated in Part I of Form ST-3 by filing a revised return. In order to give compliant assessees who had filed their ST 3 return by the due date or some days later, an immediate and viable window to file revised returns, all ST3 returns for the period 1-4-2017 to 30-6-2017 which have been filed upto and inclusive of the 31st day of August 2017, shall be deemed to have been filed on 31-8-2017. Once details of such credit are reflected in the ST-3, the assessee may proceed to fill in the details in Form GST TRAN-1.

In the case of assessees who were not registered under ACES, who want to make payment of service tax on or after 1-7-2017, they may avail of the category of “non assessee registration” in the registration module of ACES.

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SBS/KA
(Release ID :171230)

Circular 207/5/2017 – Service Tax

Editing of Core Fileds in the Registration

Application for Amendment in Registration Particulars (for both core and non-core) service is available on the portal now. Taxpayers who wish to change their particulars may do so now.

To edit the fields, following the navigation path gst.gov.in – Services – Registration – Amendment of Registration Core Fields

The core fields which can be amended are

• Legal Name of the Business 
• Trade Name 
• District 
• Constitution of Business (Select Appropriate) 
• All the fields which are given in Details of Principal Place of Business Tab

whenever the above fields are edited, the reason for editing the same along with date has to be provided mandatorily.  This information is required for the audit trail.

GST Tip – 346

When the concerned officer issues notice to the taxable person for not paying or short payment of tax or erroneously refunded or input tax credit wrongly availed or utilised by reason of fraud or any wilful misstatement or suppression of facts to evade tax, if the taxable person pays the interest @ 18% and penalty @25% and intimates the concerned officer in FORM GST DRC-03, then the concerned officer will shall issue an order in FORM GST DRC-05 concluding the proceedings in respect of the said notice.

GST Tip – 345

On payment of penalty and interest on a voluntary basis by the taxpayer before the issue of notice by the concerned tax officer in FORM GST DRC-01, the tax officer will not issue the notice and he will acknowledge the payment of interest and penalty in FORM GST DRC-04.

Notification Issued For GST Actionable Claim On Branded Food Products

The GST Council, in its 21st meeting held on 9th September, 2017 at Hyderabad has, inter alia, recommended that for 5% GST rate on cereals, pulses and flours etc. put up in unit container and bearing a registered brand name:

a) A brand registered as on 15.05.2017 under the Trademarks Act, 1999 shall be deemed to be a registered brand for the purposes of levy of 5% GST, irrespective of whether or not such brand is subsequently deregistered.

b) A brand registered as on 15.05.2017 under the Copyright Act, 1957 shall also be treated as a registered brand for the purposes of levy of 5% GST.

c) A brand registered as on 15.05.2017 under any law for the time being in force in any other country shall also be deemed to be a registered brand for the purposes of levy of 5% GST.

d) A mark or name in respect of which actionable claim is available shall be deemed to be a registered brand name for the purposes of levy of 5% GST.

2. Notification Nos. 27/2017-central tax(rate), 28/2017-central tax(rate), 27/2017-Integrated tax(rate), 28/2017-Integrated tax(rate), 27/2017-Union territory tax(rate), 28/2017-Union territory tax(rate), giving effect to the Council’s recommendations relating to changes in GST rates on goods and conditions appended thereto have been issued on 22nd September, 2017.

3. Regarding aforesaid recommendations of the Council, these notifications, interalia, provide that 5% GST will apply if on brand name [as defined in the notification] an actionable claim or enforceable right in court of law is available. In this context, these notifications also provide that this 5% GST will, however, not apply if the person concerned voluntarily foregoes any actionable claim or enforceable right on such brand name, subject to the conditions that he:

a) files an affidavit to the effect that he is voluntarily foregoing his actionable claim or enforceable right on such brand name with the jurisdictional Commissioner of Central Tax or State Tax, or the jurisdictional officer of Union Territory Tax, as the case may be, and

b) prints in indelible ink, both in English and local language on each such unit container, that in respect of brand name printed on the unit containers he has voluntarily foregone his actionable claim or enforceable right.

4. The above mentioned notifications are effective from 22nd September, 2017.

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DSM/SBS/VL/SAN
(Release ID :171047)

Blockage of Working Capital of Exporters

There are lot of apprehensions expressed in the media about the problem of blockage of working capital for exporters post-GST. There are various figures also being discussed on the blockage of such funds, which are wild estimates. Such media reports are not based on facts.

i) First of all, it may be mentioned that in respect of 66% value of exports, exporters have preferred the duty drawback scheme instead of taking actual refund of input taxes in the pre-GST regime. Duty drawback scheme was actually extended in the post-GST regime for a period of 3 months, i.e. upto 30th September, 2017, subject to that exporter not taking input tax credit under GST. This means that as of now, for 66% of the value of exports, there is no blockage of funds.

ii) The remaining 33% of exporters always used to prefer a normal refund route for taxes paid on inputs for Central Excise separately and for VAT separately and that was made available to them only after the actual exports took place and, for such class of exporters, earlier also there was a normal blockage of funds for a period of 5 – 6 months at least except for those using facility of advance authorisation. Hence, the problem is not as grievous as it is made out to be. Notwithstanding this, the Committee on Exports is working on issues of export sector.

iii) A lot of people are speculating that the refund for inputs in case of exports under GST will be available only when regular form GSTR 3 is filed for every month. This is not the case. We are trying to find a way of giving refund by linking form GSTR 1 with form GSTR 3B and, therefore, for the month of July, where form GSTR 1 is already filed, the authorities would be in a position to process the refund applications. Therefore, the exporters, who have not yet filed form GSTR 1 for July 2017, may be advised to file it immediately and not to wait till the deadline. GSTN application for refund is also getting ready. But, in the meantime, we are also finding other ways of giving refund, if necessary through a manual procedure.

iv) The Committee on Export set up by the GST Council met on 19th & 20th August, 2017 and have discussed various methods of resolving the issue of blockage of funds for the exporters. The Committee also interacted with the exporters of eight sectors who made detailed presentations on the problems being faced by them. The Committee would present the solution to their problems before the GST Council as soon as possible.

v) In the meantime, the authorities of State Governments as well as Central Government have been requested to clear the pending refund claims of Central Excise and VAT for the pre-GST period, so that the exporters will get immediate relief.

*****DSM/SBS/KA
(Release ID :171021)