To reduce tax slabs in case of GST, we have to become revenue neutral plus;

FM: To reduce tax slabs in case of GST, we have to become revenue neutral plus; Inspects the Passing-out Parade of 67th Batch of IRS(C&CE) and delivers Valedictory Address; Calls for fair implementation of tax laws; Releases NACIN Coffee Table Book and Year Book on its Founding Day.

The Union Minister of Finance and Corporate Affairs, Shri Arun Jaitley said that as far as GST is concerned, we have space for improvement eventually once we become revenue neutral to think in terms of bigger reforms such as lesser slabs, but for that we have to become revenue neutral plus. To ensure this, the Finance Minister said that we have to certainly ensure larger presence. He said that there are no grey areas in implementation of tax laws. The Finance Minister said that the taxes which are payable have to be paid and which are not payable, then the same are not to be paid. He asked the young officers that in case of doubt, move straight.

The Finance Minister Shri Arun Jaitley was delivering the Valedictory Address at the NACIN Founding Day and Passing-out Ceremony of the 67th Batch of IRS (C&CE) at NACIN in Faridabad, Haryana today.

The Finance Minister told the Officers that they will get the option of choosing the path of working with dignity, self-respect and honesty from the very beginning of their career. The peer group is the best to judge the performance of an officer, the Minister concluded.

National Academy of Customs, Indirect Taxes and Narcotics (NACIN) celebrated its Founding Day today i.e. on Sunday, 1st October at NACIN Complex, Faridabad for the First time. It started as a Training School in 1955 on 1st October. The Founding Day Ceremony was presided by the Union Finance Minister Shri Arun Jaitley.

On the occasion of Founding Day, the Passing -out Ceremony of IRS (C&CE) Probationers of the 2015 batch was also held. The Finance Minister also inspected the Passing-out Parade and took the salute. Ms. Vanaja N. Sarna, Chairperson, CBEC, welcomed Shri Jaitley on behalf of NACIN.

The 2015 batch of Indian Revenue Service (IRS,C&CE) which has passed-out from the Academy after completing their professional training consisted of 147 officer trainees including 32 women officers. These young officers will be at the helm of administering the GST, India’s biggest tax reform since independence.

During the passing-out ceremony, the Finance Minister Shri Jaitley awarded medals to the five officer trainees who have excelled in different areas of training for their exceptional achievement. Young officer Dr. Farah Zachariah was awarded with the Finance Minister’s gold medal for being the overall best officer trainee.

The Finance Minister, Shri Jaitley also unveiled the NACIN Coffee Table Book and Year Book on the occasion. The Coffee Table Book traces the history of the Academy as well as of the Indian Revenue Service. The Finance Minister also felicitated four outstanding Faculty of NACIN for their contribution in the field of training and capacity building. During the ceremony, international capacity building partners of NACIN i.e. WCO, UNEP, UNODC, ADB and others were also felicitated by the Finance Minister.

On this occasion, a Stall on NACIN’s contribution to GST Outreach & Training was also inaugurated by the Finance Minister, Shri Arun Jaitley. The Chief Guest and other dignitaries also walked down an Exhibit showcasing the past, present and future of the Academy, aptly titled “NACIN Heritage Walk”.

The event was attended among others by all senior officers of the Central Board of Customs and Central Excise(CBEC).

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DSM
(Release ID :171301)

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Last Date for Payment of Gst and Filing of Return For July 2017 Extended By 5 Days

The GST Implementation Committee, consisting of State and Central Government officers, has taken a decision to extend the last date for payment of the GST for the month of July 2017 to 25th August, 2017.
Earlier the last date for payment of taxes and filing of GST Return in Form 3B for the month of July was kept as 20th of August 2017.  Since it is the first Return to be filed under GST, the tax payers and the tax practitioners have requested for few more days to file their Return.  Also there have been requests from States which are hit with floods to extend the last date for filing of GST Returns.  The State of Jammu & Kashmir has also requested for extension of time because of late passing of their GST Ordinance. Some technical glitches are also experienced by last minute return filers.
It has been specified that for those tax payers, who do not want to avail of transitional credit in TRANS1 this month, the date for return filing will be 25th August 2017.  And for those who want to fill up TRANS1 this month, the last date for filing of returns will be 28th August 2017, as announced earlier. In order not to face any last moment technological difficulty in submission of return, all tax payers are requested to kindly file their return well before 25th / 28th of August 2017 and not wait for the last date. Suitable notification is being issued shortly.
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DSM/SBS
(Release ID :170103)

On Clarification regarding availability of Transitional Credit for GST

As per the rules, the Goods and Services Tax (GST) for the month of July 2017 has to be paid by 20th August, 2017. Only after the payment of full GST, return in summary Form 3B can be filed.

Concerns have been raised about the form for claiming transitional input tax credit not being available on the GSTN website. This form will be available on the GSTN website from 21st August, 2017. In view of this, a small window of opportunity is being given to all the taxpayers. For those taxpayers who do not want to claim any transitional input tax credit have to necessarily pay the tax and file return in Form 3Bbefore the due date of 20th August, 2017. The taxpayers who want to avail the transitional input tax credit should also calculate their tax liability after estimating the amount of transitional credit as per Form TRANS I. They have to make full settlement of the liability after adjusting the transitional input tax credit before 20th August, 2017. However, in such cases, they will get time upto 28th August, 2017 to submit Form TRANS I and Form 3B. In case of shortfall in the amount already paid vis-à-vis the amount payable on submission of Form 3B, the same will have to be paid with interest @ 18% for the period between 21stAugust,2017 till the payment of such differential amount.

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DSM/SBS/AK

GST on Khadi products

Ministry of Micro, Small and Medium Enterprises (MSME) welcomes the introduction of GST. The entire Khadi & Village Industries (KVI) sector has been enjoying the benefit of tax exemption even under the pre-independence era. With the exemption to the SSI sector being drastically reduced from the existing Rs.150 lakh to Rs.20 lakh, the exemption cover enjoyed by many of the Khadi Institutions (KIs) has been removed. KIs are now mandated to obtain registration under GST and also pay GST on various Khadi products which is 5%.  The products of the Village Industries sector were either taxed @ 0-14.30% before-GST and post-GST the same products attracts tax @ 12-28%, and the details of the same is given below:  

Details of products of the Village Industries sector under pre-GST & post-GST

 

Items

Before (GST)

After (GST)

Dona plate

5%

18%

PVC Scrap

5%

18%

Ayurvedic Medicine

0%

12%

Sanitary Hardware & Paint

14%

28%

Marble & Granite

5-14%

28%

Electronic Weighing Scale

5.5%

28%

Lock

5%

18%

Mentha

5%

18%

Solar Plate

0%

18%

Textile sector

0 to 5%

18%

Gobar Gas/Bio Fuel Generator

0%

18%

Agriculture Diesel Engine (upto 12 B.H.P.)

5%

28%

Plywood

14.30%

28%

Sewing Machine parts

5%

12%

Detergents

5%

28%

Glassware boll (Kancha)

0%

18%

Tractor attachments

14%

28%

Weighing machines

14%

28%

Wet grinders

14%

28%

Compressors

14%

28%

Packing Machines

14%

28%

Auto-parts

14%

28%

Garage Equipment

14%

28%

Hand-made soap (3401)

0%

18%

Hand-made paper (4802)

0-4%

12%

Herbal Shampoo (3305)

5-12%

28%

Leather Products (suit-case/brief-case/other articles)

5-12%

28%

Agricultural, Horticultural or Forestry Machinery for Soil preparation

5%

12%

Harvesting or threshing machinery

0%

12%

All food mixes, sharbat, ready to eat packaged food

5%

18%

Hand operated mechanical appliances, weighing 10 kg or less, used in the preparation, conditioning or serving of food or drink

5%

18%

 

At present only Khadi yarn produced in Khadi sector is exempted, while other Khadi products attracts 5% GST.  Ministry of MSME has approached Ministry of Finance to consider the sector for exemption from GST or to ensure a seamless flow of input tax credit in order for Khadi Institutions to claim input tax credit.

         

 This Press Release is based on information given by the Minister of State for MSME Shri Giriraj Singh in a written reply to a question in Rajya Sabha on 10.08.2017 (Wednesday).

 

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AK/RM

 

 

(Release ID :169854)

Sale of Products after Introduction of GST 

On account of implementation of GST there may be instances where the retail sale price printed on pre-packaged commodity is required to be changed. The Department has therefore issued an order according to which, manufacturers/packers/importers of pre-packaged commodities are to declare the revised retail sale price (MRP), by way of stamping or putting sticker or online printing, as the case may be, on the unsold stock

Manufactured/packed/imported prior to 1st July, 2017, if any, in addition to the existing retail sale price (MRP), for three months i.e. upto 30th September, 2017. Use of un-exhausted packaging material/wrapper has also been allowed upto 30th September, 2017 after making the necessary corrections.

The said information has already been disseminated to all the stakeholders and Controllers of Legal Metrology of all States/UTs for immediate necessary action. The Department’s website contains FAQs for explaining the manner in which MRP can be undertaken.

The matter is being monitored on a continuous basis, and the complaints received so far for not selling the pre-packaged commodities at decreased prices where the rate has been decreased on National Consumer Helpline have been forwarded to the Controllers of Legal Metrology of all States/UTs for immediate necessary action.

Further as per the information of CBEC, section 171 of the Central Goods and Services Act, 2017 provides for Anti-Profiteering measure according to which any reduction in rate of tax on any supply of goods or services or the benefit of input tax credit shall be passed on to the recipient by way of commensurate reduction in prices and the Central Government may constitute an Authority to examine the same. Many business entities have reduced the prices of their goods and services in view of lower GST rates under the GST regime. They have been publishing these revised rates in leading new dailies from time to time for consumer benefit.

The Department has already issued an advertisement in the Newspaper regarding MRP aspects and the final price to protect consumer interests. The Department is also doing the outdoor publicity through creatives on MRP after implementation of GST.

This information was given by Shri C. R. Chaudhary, the Minister of State for Consumer Affairs, Food and Public Distribution, in a written reply to a question in Rajya Sabha, today.

****AK
(Release ID :169647)

New Rules for Packaged Food Products

The Government has amended the Legal Metrology (Packaged Commodities) Rules, 2011 vide G.S.R. 629(E) dated 23 June, 2017 and incorporated a new provision under Rule 6(1) as follows:

“6(1)(da) If a package contains a commodity which may become unfit for human consumption after a period of time, the ‘best before or use by the date, month and year’ shall also be mentioned on the label:

Provided that nothing in this clause shall apply if a provision in this regard is made in any other law.”

The facility of ‘e-code’ for net quantity assurance of the commodity and other required declarations is proposed to be given to the industries to ensure that the commodity is correct in quantity and declarations, which is optional and not mandatory.

The e-commerce companies are required to ensure that the mandatory declarations are displayed on the digital and electronic network used for e-commerce transactions viz. Name and address of the manufacturer/ packer/ Importer, Name of the Commodity, Net quantity, Retail sale price in the form MRP (inclusive of all taxes) and consumer care details.

The size of the numerals printed on the pre-packaged commodities have been increased vide this new amendment in the Legal Metrology (Packaged Commodities) Rules, 2011. The said amendment will come into force w.e.f. 1stJanuary, 2018 to enhance consumer protection.

For the violation of these Rules, the penalty provisions are made under section 36 of the Legal Metrology Act, 2009.

This information was given by Shri C. R. Chaudhary, the Minister of State for Consumer Affairs, Food and Public Distribution, in a written reply to a question in Lok Sabha, today.

****AK
(Release ID :169376)

Amendments to the Legal Metrology (Packaged Commodities) Rules, 2011 to make mandatory for Medical Devices to print MRP on the packages

Amended rules shall be applicable to e-commerce companies also: Shri Mansukh L. Mandaviya

Minister of State for Road Transport & Highways, Shipping and Chemicals & Fertilizers, Shri Mansukh L. Mandaviya, in a written reply to a question in Lok Sabha today, informed that it would become mandatory for medical devices to print/label MRP on the packages.

Shri Mandaviya stated that Ministry of Consumer Affairs, Food and Public Distribution has made amendments to the Legal Metrology (Packaged Commodities) Rules, 2011 making these rules applicable to medical devices, on one hand, and to e-commerce companies, on the other. These rules shall be applicable from 01.01.2018, he added.

Further, the Minister stated that the Legal Metrology (Packaged Commodities) Rules, 2011 provide that every package shall bear the name, address, telephone number, e-mail address of the person who can be or the office which can be contacted, in case of consumer complaints.

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VM
(Release ID :169356)