26th Meeting of the GST Council meets & decides Extension of tax exemptions for exporters for six months

Sending a strong positive signal to the exporting community, the GST Council in its 26thmeeting held here today decided to extend the available tax exemptions on imported goods for a further 6 months beyond 31.03.2018. Thus, exporters presently availing various export promotion schemes can now continue to avail such exemptions on their imports upto 01.10.2018, by which time an e-Wallet scheme is expected to be in place to continue the benefits in future.

In a related development which would benefit the exporters, the Council reviewed the progress in grant of refunds to exports of both IGST and Input Tax Credit.  The Council appreciated that the pace of grant of IGST refund has picked up. Thereafter, the Council directed GSTN to expeditiously forward the balance refund claims to the Customs/Central GST/State GST authorities, as the case may be, for their immediate sanction and disbursal.

It may be recalled that in its meeting held on 06.10.2017 the Council had noted that exporters are experiencing difficulties of cash blockage on account of having to upfront pay GST / IGST on the inputs, raw materials etc. / finished goods imported / procured for purposes of exports. An interim solution was found by re-introducing the pre-GST tax exemptions on such imports. Additionally, for merchant exporters a special scheme of payment of GST @ 0.1% on their procured goods was introduced. Also, domestic procurement made under Advance Authorization, EPCG and EOU schemes were recognized as ‘deemed exports’ with flexibility foreither the suppliers or the exporters being able to claim a refund of GST / IGST paid thereon. All these avenues were made available upto 31.03.2018.

The permanent solution agreed to by the Council was to introduce an e-Wallet scheme w.e.f. 01.04.2018. The e-Wallet scheme is basically the creation of electronic e-Wallets, which would be credited with notional or virtual currency by the DGFT. This notional / virtual currency would be used by the exporters to make the payment of GST / IGST on the goods imported / procured by them so their funds are not blocked.

On 16.12.2017, Finance Secretary constituted a Working Group with representatives of Central and State Governments to operationalize the e-Wallet scheme. After reviewing the progress, the Council noted that whereas some preparatory work had been done, more needs to be done to address a large number of technical, legal and administrative issues that have been identified. The Council appreciated that this would require more time. The Council was also unanimous that there should be no disruption that may affect the exports. Accordingly, the Councilagreed to:

(a)        Defer the implementation of the e-Wallet scheme by 6 months i.e., upto 01.10.2018; and

(b)        Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for a further 6 months i.e., upto 01.10.2018.

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DM/RM/SS

 

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All about E-waybills, Refunds and Anti-Profiteering provisions in GST

About The Event

India-gst.in is coming up with a series of sessions on latest changes in GST and as part of it, the first session is being held in Hyderabad on 7th March 2018. Eminent speakers are being invited to address the sessions. 

It will be useful to executives, professionals and key decision makers in the organization as the topics covered are of primary importance under GST like E-waybills, Refunds and Anti-profiteering provisions in GST.

Session – 1  E-waybill by MR. ROHIT KUMAR SINGH, Indirect Tax Consultant

E-waybills for an interstate movement of goods above Rs 50,000 under GST using the central portal. Topics to be covered are

  • Introduction of e-Way Bill
  • Why is e-Way bill required
  • When should e-Way Bill be issued?
  • Cases when e-Way bill is Not Required
  • Who should Generate an e-Way bill
  • States that have Notified e-Way Bill
  • Processes involved in generation of web-based e-Way Bill
  • Practical demo of E Way Bill generation – Thru excel tool
  • Validity of e-Way Bill
  • Documents required to generate e-Way Bill
  • Enabling the various modes of the e-Way Bill generation
  • Physical check on e-Way bill

— Lunch Break —

Session II – Refunds by CMA Bhogavallli Mallikarjuna Gupta, Founder India-gst.in

  • Refunds – Law and documentation
  • Refund on excess balance in electronic credit ledger
  • Refund on export of goods and services with payment of IGST
  • Refund on export of goods and services without payment of IGST
  • Refund on deemed exports
  • Refund on supplies to SEZ – with/without payment of duties

Session III – Anti Profiteering by CMA Bhogavallli Mallikarjuna Gupta, Founder India-gst.in

  • Anti-Profiteering Meaning
  • Rules
  • Documents to be verified

The venue will be announced shortly as our logistics partners are working on it to provide the best experience.

About Speakers
 
Mr. Rohit Kumar Singh
Head GST Suvidha Provider – Karvy Data Management Services Limited
Co-authored a book on Company Law Matters
Speaker – ASSOCHAM, FTAPCCI, Industry associations, T-HUB, 91 Springboards, ICAI, ICMAI, Calcutta Management Association, etc.
Faculty for Indirect tax for ICAI and GST Certificate course for ICMAI

CMA Bhogavalli Mallikarguna Gupta
Advisor, Speaker, and Author on Indian GST
Founder and Chief Editor of http://www.india-gst.in
Director – Business Advisory Services, Procode Softech Pvt Ltd
Resource Person – ICAI Taxation
Special Invitee – GST and Customs Committee at FTAPCCI
National Advisory and Governing Body member at MSME World

GST Tip – 424

Taxpayers can now claim the refund of the tax amounts using the refund application online for the refund amount raised “On account of Assessment / Provisional Assessment /  Appeal / Any other Order.

Refund on provisional assessement

GST Tip – 394

New rule 97A has been added wide Notification No 55 – Central Tax  for processing of refunds manually in Chapter X after Rule No 97. As per Rule 97A, for refunds processing  or procedure, including the manual filing of the refund application, intimation, reply, declaration, statement or issuance of the said notice, order or certificate in such Forms as appended to these rules.”

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 – 265

Notification No. 15/2017-Central Tax (Rate), refund of unutilized input tax credit is not   is not allowed for the services given in subitem (b) of item 5 of Schedule II of the Central Goods and Services Tax Act, i.e construction of a complex, building, civil structure or a part thereof, including a complex or building intended for sale to a buyer, wholly or partly, except where the entire consideration has been received after issuance of completion certificate, where required, by the competent authority or after its first occupation, whichever is earlier.

GST Tip – 262

Notification No.5/2017-Central Tax (Rate) dated 28th June 2017 provides the list of items under various chapters where the refund of excess credit is not eligible in cases where the input tax is greater than the outward supplies. http://india-gst.in/wp-content/uploads/2017/06/Rate-5-2017.pdf