Sunday, 15 October, 2017

Vistra India Update 337

October 1 - October 15, 2017

RBI AND FEMA

Master Directions issued to regulate Peer to Peer Lending Platforms

In August 2017 RBI issued a notification to include entities carrying on the ‘business of P2P lending platform’ under the category of Non-Banking Finance Company (NBFC). Now, RBI has issued directions to regulate these entities.

Key points in these directions are:

  • ‘Peer to Peer Lending Platform’ (P2P) is defined as an intermediary providing the services of loan facilitation via online medium or otherwise, to the participants.  Participants are defined as persons who have entered into an arrangement with the NBFC-P2P to lend on it, or to avail of loan facilitation services provided by it
  • Only companies registered under Companies Act are allowed to carry on this business and they  should have minimum net-worth of Rs. 2 Crores
  • Maximum lending by a lender across all P2P platforms can’t exceed Rs. 10 Lakhs & exposure of single lender to same borrower across all P2P platforms can’t exceed Rs. 50,000. No secured lending allowed
  • Business should be commenced only after obtaining certificate of registration. Existing entities already carrying on the business should obtain certificate of registration within 3 months from October 4, 2017
  • Entities should neither lend from their own Funds nor accept deposits

Click to view the circular

GOODS AND SERVICES TAX

Clarification on issues related to furnishing of Bond/Letter of Undertaking for exports

The Central government vide Circular No 8/8/2017- GST and Circular No. 37/2017-Central tax, has clarified that all registered persons who intend to supply goods or services for export/ to SEZ without payment of integrated tax shall be eligible to furnish a Letter of Undertaking in place of a bond except those who have been prosecuted for any offence under the CGST Act or the Integrated Goods and Services Tax Act, 2017 or any of the existing laws and the amount of tax evaded in such cases exceeds Rs. 250 lakhs

Click to view the circular

Enhancement of turnover limit for Composition Scheme

Registered dealers whose aggregate turnover in the preceding financial year did not exceed Rs. 75 lakhs were allowed to pay tax under composition levy at prescribed rates. Now, the Central Government vide Notification No. 46/2017- Central Tax dated October 13, 2017 has increased the turnover limit from Rs. 75 lakhs to Rs. 1 crore. In case of special category states i.e. Arunachal Pradesh, Assam, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, Himachal Pradesh, the turnover limit has been increased from 50 lakhs to 75 lakhs

Click to view the circular

Removal of difficulties in implementation of Composition Scheme

Vide Order No. 01/2017-Central Tax dated October 13, 2017 the Central government has notified Central Goods and Services Tax (Removal of difficulties) Order, 2017, to clarify the following in relation to composition scheme:

  • Non-inclusion of exempt services for calculating aggregate turnover
  • Supplier of goods and/or services including exempt services are also eligible to opt for composition Scheme

Click to view the circular

Supplier of taxable services making inter- state supplies with aggregate turnover of less than Rs. 20 lakhs exempted from mandatory GST registration

Per Section 24 of the CGST Act, 2017, persons making any inter-state taxable supply are required to take compulsory registration in GST irrespective of threshold limits.  Now, vide Notification No. 10/2017 – Integrated Tax dated October 13, 2017 central government has exempted persons making inter-state supplies of taxable services with an aggregated turnover not exceeding Rs. 20 lakhs in a financial year from obtaining compulsory registration in GST

Click to view the circular

Exemption from payment of GST on the purchase of goods and services from unregistered persons

Vide Notification No. 38/2017- Central Tax (Rate) and Notification No. 32/2017 – Integrated Tax (Rate) dated October 13, 2017, Central Government has exempted payment of GST under Reverse Charge Mechanism (RCM) on the purchase of goods and services from unregistered person’s upto 31st March 2018. RCM in respect of the notified purchases like services of GTA, advocate, import of services, etc. would continue

Click to view the circular

Amendment in the CGST Rules, 2017

Vide Notification No. 45/2017 – Central Tax dated October 13, 2017, central government has amended CGST Rules, 2017 and important amendments are as follows:

  • Registered person supplying taxable as well as exempted goods/ services to an unregistered person can issue single “invoice-cum-bill of supply”
  • Time limit for opting for composition levy extended till 31st March, 2018;
  • If a person opts for composition scheme in between a quarter, then he shall file monthly return for  part of the quarter

Click to view the circular

Due dates for filing of Form GSTR – 4 and Form GSTR – 6 extended

Vide Notification No. 41 & 43 /2017- Central Tax, the Central Government has extended the due date for filing Form GSTR 4 (return to be filed by composition supplier) to 15th November 2017 for the quarter July 2017 to September 2017 and to 15th November 2017 for Form GSTR 6 (return to be filed by input service distributor) for the months of July, 2017, August, 2017 and September, 2017

Click to view the circular       

Motor Vehicles procured and leased prior to July 1, 2017 would attract GST at a rate equal to 65% of the applicable GST rates

Vide Notification No. 37/2017-Central Tax (Rate) dated October 13, 2017, in case of lease of motor vehicles purchased and leased prior to 1st July 2017, the Central Government has reduced the GST rate to 65% of the applicable GST rate

Click to view the circular

Empowering State Tax officers for processing and grant of refund

Vide Notification No. 39/2017 – Central Tax dated October 13, 2017, Central Government has notified that the officers appointed under the respective SGST Act, 2017 or UTGST Act, 2017 to act as proper officers for sanctioning of refund

Click to view the circular

CUSTOMS

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 94 /2017 - Customs (N.T.) notified the rate of exchange for conversion of the foreign currency into Indian currency or vice versa for Export and Import of goods, with effect from 6th October 2017

Click to view the circular

IGST exemption for EOU Units

The Central Board of Excise and Customs (CBEC) vide Notification No. 78 /2017 - Customs has notified that import of goods by EOU Units is exempted from payment of IGST. The exemption is available up to March 31, 2018

Click to view the circular

Events

26 Sep
Monaco | 26 Sep - 29 Sep
Singapore | 27 Sep
Mauritius | 30 Sep
Mexico City | 4 Oct - 5 Oct
Luxembourg | 4 Oct - 5 Oct
Munich | 8 Oct - 10 Oct
Munich | 9 Oct
9 Oct - 10 Oct
Warsaw | 18 Oct
Dublin | 18 Oct
London | 25 Oct - 26 Oct

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