Sunday, 31 December, 2017

Vistra India Update 342

December 16 - December 31, 2017

Company Law

Companies (Cost records and Audit) Second Amendment Rules, 2017

With the introduction of GST, Ministry of Corporate Affairs has amended Companies (cost records and audit) Rules, 2014 to replace the Central Excise Tariff Act Heading with Customs Tariff Act Heading effective from 1st July, 2017

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Condonation of Delay Scheme, 2018

Based on the representation received from Industry and with a view to provide an opportunity to companies and directors who have defaulted in filing the annual return/financial statements to become compliant and normalize the operations, the Central Government has introduced a scheme called “Condonation of Delay Scheme 2018

Highlights of the said scheme:

  • The scheme shall come into force with effect from 1st January 2018 and shall remain in force up to 31st March 2018 
  • This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/whose names have been removed from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30th June 2017 in accordance with the provisions of this Scheme
  • Scheme provides procedures to apply for condonation and the filings / forms to which the scheme is applicable

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Goods and Services Tax

Manual filing and processing of refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger & Advance Ruling and appeals before Appellate Authority for Advance Ruling

Due to the non-availability of the refund module on the common GST portal, it has been decided by the competent authority, on the recommendations of the GST Council, that the applications/documents/forms pertaining to refund claims on account of inverted duty structure, deemed exports and excess balance in electronic cash ledger & Advance Ruling and appeals before Appellate Authority for Advance Ruling shall be filed and processed manually till further orders

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Clarification on Due date of filing of returns and correcting errors in filing of Forms under GST

In view of various representations received seeking clarifications on various aspects of return filing such as return filing dates, applicability and quantum of late fee, amendment of errors in submitting / filing of FORM GSTR-3B and other related queries, the Central Board of Excise and Customs (CBEC) vide Circular No 26/26/2017 dated 29th December 2017 has issued the following clarifications

a. Form GSTR 3B and GSTR 1- filing calendar 

filing calendar

b. It has been further decided that the time period of filing of FORM GSTR-2 and FORM GSTR -3 for the months of July 2017 to March 2018 would be worked out by a Committee of officers and communicated later

c. The due date for filing of FORM GSTR-4 for the quarter ending September 2017 has been extended to 24th December 2017 vide Notification No. 59/2017-CT dated 15th November 2017. For the remaining quarters, the last date for filing of FORM GSTR-4 is within eighteen days after the end of such quarter

d. Based on self-assessed turnover, the registered person with turnover up to Rs. 1.5 Crore will be required to file FORM GSTR-1 on quarterly basis instead of on monthly basis. It is clarified that the registered person may opt to file FORM GSTR-1 on monthly basis if he so wishes even though his aggregate turnover is up to Rs. 1.5 Crore. Once he falls in this bracket or if he chooses to file return on monthly basis, the registered person will not have the option to change the return filing periodicity for the entire financial year. In cases, where the registered person wrongly reports his aggregate turnover and opts to file FORM GSTR-1 on quarterly basis, he may be liable for punitive action under the CGST Act, 2017

e. It has been decided that for months, i.e. October 2017 onwards, the amount of late filing fee payable, by a taxpayer whose tax liability for that month was „NIL‟, will be Rs. 20/- per day (Rs. 10/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts). For other taxpayers, whose tax liability for that month was not „NIL‟, late fee payable will be Rs. 50/- per day (Rs. 25/- per day each under CGST & SGST Acts) instead of Rs. 200/- per day (Rs. 100/- per day each under CGST & SGST Acts). Notification No. 64/2017-CT dated 15th November 2017 has already been issued in this regard

f. Detail procedure to rectify the common errors while submitting FORM GSTR-3B have been prescribed

g. It is further clarified that the information furnished by the registered person in the return in FORM GSTR-3B would be reconciled by the department’s system with the information furnished in FORM GSTR-1 and discrepancies, if any, shall be dealt with in accordance with the relevant provisions of the CGST Act, 2017 and rules made thereunder. Detailed instructions regarding reconciliation of information furnished in FORM GSTR-3B with that contained in FORM GSTR-2 and FORM GSTR-3 will be issued in due course of time

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Amendment to GSTR-1, FORM GST RFD-01 & FORM GST RFD-01A notified

CBEC has issued Notification No. 70 Central Tax on 21st December 2017 to notify the amendments made to FORM GSTR-1, FORM GST RFD-01 & FORM GST RFD-01A.

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Due dates for filing Form GSTR 1 for the period July 2017 to March 2018- notified

CBEC has issued Notification No. 71 & 72 /2017 – Central Tax on 29th December 2017 to notify the due dates for filing Form GSTR 1 for the period July 2017 to March 2018 as detailed below

For the taxpayers with turnover less than Rs 1.50 crore

Sl. No

Period for filing of GSTR – 1

Due Date

1 July – 2017 to September 2017 10th January 2018
2 October 2017 – December 2017 15th February 2018
3 January 2017 – March 2018 30th April 2018

For the taxpayers with turnover more than Rs 1.50 crore

Sl. No

Period for filing of GSTR – 1

Due Date

1 July – 2017 to November 2017 10th January 2018
2 December 2017 10th February 2018
3 January 2018 10th March 2018
4 February 2018 10th April 2018
5 March 2018 10th May 2018

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Information to be furnished prior to commencement of movement of goods and generation of e-way bill – Effective date notified

Central Goods and Services Tax Rules, 2017 provides that every registered person who causes movement of goods of consignment value exceeding Rs. 50,000/- in relation to a supply or for reasons other than supply or due to inward supply from an unregistered person, shall, before commencement of such movement, furnish information relating to the said goods in Part A of FORM GST EWB -01, electronically, on the common GST portal.  The central Government has now notified that the above said rule would be effective from 1st February 2018.

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Central Goods and Services Tax (Fourteenth Amendment) Rules, 2017.

The Central Government has notified the following.

  1. Formula for computing  refund of input tax credit in case of  zero-rated supply of goods or services or both without payment of tax under bond or letter of undertaking in accordance with the provisions of sub-section (3) of section 16 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017).  The formula would be “ Refund Amount = (Turnover of zero-rated supply of goods + Turnover of zero-rated supply of services) x Net ITC ÷Adjusted Total Turnover “
  2. Amended Form GST REG -10 - Application for registration of person supplying online information and data base access or retrieval services from a place outside India to a person in India, other than a registered person
  3. Amended Form GSTR – 11 - Statement of inward supplies by persons having Unique Identification Number (UIN) 
  4. Amended Form GST RFD-10- Application for Refund by any specialized agency of UN or any Multilateral Financial Institution and Organization, Consulate or Embassy of foreign countries, etc.

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Customs

Publishing of rate of exchange for conversion of the foreign currency

The Central Board of Excise and Customs (CBEC) vide Notification No. 118 /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 22nd of December 2017 respectively

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