Changes, Drawbacks and Information Regarding Goods and Service Taxes, GST

0
39

India is going to launch its biggest tax reform in decades on July 1, so the government is trying to ensure that doubts arising over the goods and services tax get answered in real time and with much possibilities.

GST “A special war room has been created… This will address issues, if they crop up, in implementation,” said a senior government official. Every ministry and department has created GST cells dedicated to the sectors they deal with.

Now the exporters and traders will start filing bills of entry and shipping in the new format aligned with the GST framework, starting from the Wednesday.

The changes cause in IGST, GST Compensation Cess, Entery of Bill and Shipping and and Billing are as following:

  • Integrated Goods and Services Tax (IGST) and GST Compensation Act will come into force from 1st of July, 2017, It would be effective from midnight of 30th July, 2017.
  • Even the Cargo arrived up to 30th June it will not attract IGST and GST Compensation Cess because the clearance will happen after 1st July,2017.
  • Petroleum and Tobacco products will continue to be levied because of additional custom duty.
  • IGST and GST Compensation Cess rate schedule and exemptions will be released on the CBEC website by 30th JUne, 2017.
  • The new bill of entery, shipping bill ever the courier import and export forms- both for electronic and manual devices will be released on CBEC website.

Tax Credit on Imports and Inputs are as following:

  • It is mandatory for all the Imports and Exports to get a GST Registration number (GSTIN) along with Import Export Code (IEC) in the bills of entry, shipping bills and Courier forms.
  • With their provisional IDs, Importers and Exporters are advised to compete their registration process for GSTIN.
  • Input Tax Credit of IGST will be based on GSTIN declared Bill entry.
  • Efforts have been made by the government to carry the smooth transition for EDI system, EDI will be connected with GSTN for validation of Input Credit, bill of entery data in non-EDI location will be digitalized.

GST Export, Refund, SEZ, EOUs and Drawbacks are as following: 

  • On 1st July the drawback schedule will be released with its continuing drawback scheme, which will continue for three months from the date of execution.
  • Exports are zero rated supplies under GST law. Refund of IGST for exports would be based on GSTIN declared in the shipping bill.
  • Imports from the SEZ to the domestic boundaries will attract IGST, 100% Export Oriented units would attract IGST on imports.
  • As for domestic procurement EXIM Scripts cannot be used for Payment of IGST and other taxes.
  • Payment of IGST and GST Compensation Cess is necessary for the Imports under Advance License and Export promotion Capital Goods.

NO COMMENTS

LEAVE A REPLY