GST Tip – 361

As per Notification No. 41/2017 – Central Tax dated 13th Oct 2017, the person registered taxpayer in GST under Composition Levy has to file GSTR – 4 for the period from 1st July 2017 to September 2017 has to file the return by 15th November 2017.


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).


(Release ID :171301)

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.


(Release ID :171269)

Notification regarding GST rate for branded cereal, pulses and flour

The GST Council, in its 21st meeting held on 9th September, 2017 at Hyderabad has, interalia, 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 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. Notifications giving effect to the Council’s recommendations relating to changes in GST rates on goods and conditions appended thereto are proposed to be 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.


(Release ID :170976)

GST Tip – 331

What is a registered brand for the levy of tax under GST? Any brand registered as on 15th May 2017, whether it is de-registered on or after the date, registered under Copy Rights Act 1957 or under any other law in force in any other country. (basis of the press release after the 21st GST Council Meeting, formal notification to be made available).

Demystifying Tax Deduction at Source under GST Act

In the current tax regime under VAT, we have Tax Deducted at Source, and the same is being continued under GST also. Section 51 of the Central Goods and Service Tax Act, 2017 talks about the provisions related Tax Deduction at Source. TDS is applicable to works contract also related to immovable properties in GST.

TDS is applicable on works contract also and the definition of works contract is defined in subsection 119 of section 2 of the CGST Act 2017.

works contract” means a contract for building, construction, fabrication, completion, erection, installation, fitting out, improvement, modification, repair, maintenance, renovation, alteration or commissioning of any immovable property wherein transfer of property in goods (whether as goods or in some other form) is involved in the execution of such contract;

The tax has to be deducted by category of persons as given in the sub-section 1 of section 51 of the CGST Act 2017.  The category of persons are

(a) a department or establishment of the Central or State Government, or

(b) Local authority, or

(c) Governmental agencies, or

(d) such persons or category of persons as may be notified, by the Central or a State Government on the recommendations of the Council,

Point “d” is an open clause and government on recommendations of the GST Council will notify the class of persons who are required to deduct TDS under GST from time to time whenever it finds that there is a necessity to plug the revenue leakage in the system.

The tax has to be deducted only in case of contracts where the contract value exceeds Rs 2.5 Lacs by the taxpayer who has issued the contract.

TDS should not be deducted if the location of the supplier and the place of supply is in a State or Union territory which is different from the State or as the case may be, Union territory of registration of the recipient.

For deriving the value of supply for determining the TDS, is the value of supply excluding the taxes paid under GST (Central Tax, State / UT Tax and Compensation Cess).

The tax so deducted has to be deposited by the deductor by 10th of next month by filing of GSTR – 7

The deductor has to issue a certificate to the deductee, the contractor from whom the tax is deducted with the details like the amount of contract, the rate of tax deducted, amount of tax deducted and amount of tax deposited by the deductor in GSTR – 7A.  The deductor has to issue a certificate within 5 days from the date on which the amount is credited, a late fee of Rs 100 will be levied per day for delay in issue of the certificate. The amount of late fee will not exceed Rs 5000.

The deductee can take the credit of the tax based on GSTR – 2 filed by the Deductor under Section 39, sub-section 3 of CGST Act 2017. The amount will be credited to the electronic cash ledger of the deductee, and he can utilize the same for payment of GST taxes.

In case if the deductor fails to deposit the tax to the respective government, he is liable to pay interest on the defaulted amount as per provisions of Section 50 of CGST Act 2017.

The deductor can claim for refund as per Section 54 of CGST Act 2017 provided that the amount is not credited to the electronic cash ledger of the deductee.

From the provision of this section, it is clear that the government does not want to lose any tax revenue from the small contractors also. One silver lining is that unlike in tax collected at source there is no matching of records to avail the credit. If the contractor wants to avail in the credit, then he has to be registered with GST. In a way, the government is ensuring that there is no revenue leakage from any transactions at any given point of time.

The tax rates with respect to works contract have been reduced from 18% to 12% wide Notification No 20 CGST (Rates) 2017 with respect to composite contracts undertaken for the Government, a local authority or a Governmental authority by way of construction, erection, commissioning, installation, completion, fitting out, repair, maintenance, renovation, or alteration. These rates are in addition to the TDS rates. In the erstwhile regime, the contractors were billing under the composite scheme where they were not taking input tax credit, and the excise taxes were added to the cost of the project along with the VAT and Service Tax. But now going forward in GST, as input tax credit is available for all the inputs if used for the furtherance of the business, this means that pricing of the existing contracts has to be re worked to take the benefit of the ITC and it is required as part of the Anti-profiteering provisions of the CGST Act. It will be very tough to say on the face of it that the cost for all the contract will be coming down, it has to evaluated on case to case basis and if there is no remarkable reduction or increase in costs due to lower tax rates on the input supplies. This is most likely to be seen in the case of construction of roads as the major component is gravel which is taxed at 5%, bitumen @ 9%, labor if on pay roll the GST is not applicable as it is part of the wages. Each and every contract has to be evaluated, and price revision has to be carried out accordingly. GST is exempted for some contracts as given in Notification No 12 CGST (Rates), 2017. The prices for contracts falling under such contracts also have to be renegotiated as ITC is not available on inputs.

The rollout date for the TDS in GST will be notified by the government separately, and before that, all the deductors have to obtain new GST registration number for TDS separately. The process of registration for TDS will commence from 18th of September 2017 based on the press release issued after the 21st GST Council Meeting held on 9th September 2017 at Hyderabad.

Any views or opinions represented above are personal and belong solely to the author and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.