Indirect Tax Important Updates for Jan 2020

Central Tax Notifications

Notification No. 74/2019 – Central Tax
Date – 26th December 2019

Seeks to waive late fees for non- filing of FORM GSTR-1 from July, 2017 to November, 2019

CBIC has made amendments in the Notification No. 4/2018– Central Tax, dated the 23rd January, 2018.

In the said notification, after the second proviso, the following proviso shall be inserted, namely:–

Amendment – “Late fee payable under section 47 for non-filling of GSTR 1 for the months/quarters from July, 2017 to November, 2019 by the due date has been waived if GSTR 1 is filed between 19th December, 2019 to 10th January, 2020.”

Indirect Tax Important Updates for Jan 2020

Notification No. 75/2019 – Central Tax
Date – 26th December 2019

Seeks to carry out changes in the CGST Rules, 2017

• Maximum ITC can be availed up to 10% of eligible ITC for invoices which are not reflecting in GSTR 2A e.f. 01.01.2020 earlier it was 20%.

• New rule 86A has been inserted.

• Where the proper officer has reason to believe that ITC available in E-Credit Ledger has been fraudulently availed or is ineligible may, for reasons to be recorded in writing, not allow utilization of such ITC or refund of unutilized amount to the extent of:

• ITC availed for the invoices issued by the supplier who has been found non-existent or not to be conducting any business from any place for which registration has been obtained.

• ITC availed without the receipt of goods or services or both.

• ITC availed in respect of the supply, the tax charged in respect of which has not been paid to Govt.

• The recipient has been found non-existent or not to be conducting any business from any place for which registration has been obtained;.

• ITC availed for which Tax invoice or other valid document is not in the possession of the registered person.

Notification No. 76/2019 – Central Tax
Date – 26th December 2019

Seeks to extend the due date for furnishing of return in FORM GSTR-1 for registered persons in Assam, Manipur or Tripura having aggregate turnover more than 1.5 crore rupees for the month of November, 2019

CBIC has made amendments in Notification No.46/2019 – Central Tax, dated the 9th October, 2019.

Amendment – “The time limit for filling GSTR 1 for registered persons having principal place of business is in Assam, Manipur or Tripura and having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or current financial year, for the month of November, 2019 has been extended till 31st December, 2019.”

Notification No. 01/2020 – Central Tax
Date – 1st January 2020

Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the CGST Act, 2017

CBIC has appointed 1st January, 2020, as the date on which the provisions of sections 92 to 112, except section 92, section 97, section 100 and sections 103 to 110 of the Finance (No. 2) Act, 2019 (23 of 2019), has come into force.

Notification No. 02/2020 – Central Tax
Date – 1st January 2020

Seeks to make amendment (2020) to CGST Rules

CBIC has amended the Central Goods and Services Tax Rules, 2017, namely:-

• These rules may be called the Central Goods and Services Tax (Amendment) Rules, 2020.
• Save as otherwise provided in these rules, they shall come into force on the date of their publication in the Official Gazette.

In the Central Goods and Services Tax Rules, 2017 (hereinafter referred to as the said rules), in rule 117,-

(a) in sub-rule (1A), with effect from the 31st December 2019, for the figures, letters and word “31st December, 2019”, the figures, letters and word “31st March, 2020” shall be substituted; (b) in sub- rule (4), in clause.
(b) in sub-clause (iii), in the proviso, for the figures, letters and word “31st January, 2020”, the figures, letters and word “30th April, 2020” shall be substituted.

Notification No. 03/2020 – Central Tax
Date – 1st January 2020

Seeks to amend the notification No. 62/2019-CT dt. 26.11.2019 to amend the transition plan for the UTs of J&K and Ladakh

CBIC has amended in the Notification No. 62/2019–Central Tax, dated the 26th November, 2019.

In the said notification,–

(i) in paragraph 2, in clause (iii), for the figures, letters and words “30th day of October, 2019” and “31st day of October”, the figures, letters and words “31st day of December, 2019” and “1 st day of January, 2020” shall respectively be substituted;

(ii) in paragraph 3, for the figures, letters and words “31st day of October, 2019”, the figures, letters and words “1st day of January, 2020” shall be substituted.

Central Tax (Rate) Notifications

Notification No. 27/2019 – Central Tax (Rate)
Date – 30th December 2019

Seeks to further amend notification No. 01/2017-Central Tax (Rate), to change the rate of GST on goods as per recommendations of the GST Council in its 38th Meeting

CBIC has made further amendments in the Notification No.1/2017-Central Tax (Rate), dated the 28th June, 2017.

In the said notification, –

(a) in Schedule II – 6%, serial numbers 80AA and 171A and the entries relating thereto shall be omitted;

(b) in Schedule III – 9%, after serial number 163A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely:

This notification has come into force on the 1st January, 2020.

Notification No. 28/2019 – Central Tax (Rate)
Date – 31st December 2019

To amend notification No. 12/ 2017- Central Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made amendments in the Notification No.12/2017- Central Tax (Rate), dated the 28th June, 2017. In the said notification, in the Table, against serial number 41, –

(a) in column (3), for the figure “50”, at both the places where they occur, the figure “20 ” shall be substituted;
(b) for the entry in column (5), the following entries shall be substituted, namely, –

“Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area:

Provided further that the State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard:

Provided also that in case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of central tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty:

Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the central tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.”.

This notification has come into force on the 1st January, 2020.

Notification No. 29/2019 – Central Tax (Rate)
Date – 31st December 2019

To amend notification No. 13/ 2017- Central Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made amendments in the Notification No.13/2017- Central Tax (Rate), dated the 28th June, 2017. In the said notification, in the Table, for serial number 15 and the entries relating thereto, the following shall be substituted, namely: –

Integrated Tax Notifications

Notification No. 01/2020 -Integrated Tax
Date – 1st January 2020

Seeks to bring into force certain provisions of the Finance (No. 2) Act, 2019 to amend the IGST Act, 2017

CBIC has appointed the 1st January, 2020, as the date on which the provisions of section 114 of the Finance (No. 2) Act, 2019 (23 of 2019) shall come into force.

For more details, please follow – Link

Integrated Tax (Rate) Notifications

Notification No. 26/2019 -Integrated Tax (Rate)
Date – 30th December 2019

Seeks to further amend notification No. 01/2017-Integrated Tax (Rate), to change the rate of GST on goods as per recommendations of the GST Council in its 38th Meeting

CBIC has made amendments in the Notification No.1/2017- Integrated Tax (Rate), dated the 28th June, 2017. In the said notification, –

(a) in Schedule II – 12%, serial numbers 80AA and 171A and the entries relating thereto shall be omitted;
(b) in Schedule III – 18%, after serial number 163A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

This notification has come into force on the 1st January, 2020.

For more details, please follow – Link

Notification No. 27/2019 -Integrated Tax (Rate)
Date – 31st December 2019

To amend notification No. 9/ 2017- Integrated Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made amendments in the Notification No.9/2017- Integrated Tax (Rate), dated the 28th June, 2017. In the said notification, in the Table, against serial number 43, –

(a) in column (3), for the figure “50”, at both the places where they occur, the figure “20 ” shall be substituted;
(b) for the entry in column (5), the following entries shall be substituted, namely, –

“Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area:

Provided further that the State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard:

Provided also that in case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of central tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty:

Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the central tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.”.

This notification has come into force on the 1st January, 2020.

For more details, please follow – Link

Notification No. 28/2019 -Integrated Tax (Rate)
Date – 31st December 2019

To amend notification No. 10/ 2017- Integrated Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made amendments in Notification No.10/2017- Integrated Tax (Rate), dated the 28th June, 2017.
In the said notification, in the Table, for serial number 17 and the entries relating thereto, the following shall be substituted, namely: –

For more details, please follow – Link

Union Territory Tax (Rate) Notifications

Notification No. 27/2019 – Union Territory Tax (Rate)
Date – 30th December 2019

Seeks to further amend notification No. 01/2017-Union Territory Tax (Rate), to change the rate of GST on goods as per recommendations of the GST Council in its 38th Meeting

CBIC has made amendments in the Notification No.1/2017-Union Territory Tax (Rate), dated the 28th June, 2017.

In the said notification, –

(a) in Schedule II – 6%, serial numbers 80AA and 171A and the entries relating thereto shall be omitted;
(b) in Schedule III – 9%, after serial number 163A and the entries relating thereto, the following serial numbers and entries shall be inserted, namely: –

This notification has come into force on the 1st January, 2020.

For more details, please follow – Link

Notification No. 28/2019 – Union Territory Tax (Rate)
Date – 30th December 2019

To amend notification No. 12/ 2017- Union Territory Tax (Rate) so as to exempt certain services as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made further amendments in the Notification No.12/2017- Union Territory Tax (Rate), dated the 28th June, 2017.

In the said notification, in the Table, against serial number 41, –

(a) in column (3), for the figure “50”, at both the places where they occur, the figure “20 ” shall be substituted;
(b) for the entry in column (5), the following entries shall be substituted, namely, –

“Provided that the leased plots shall be used for the purpose for which they are allotted, that is, for industrial or financial activity in an industrial or financial business area:

Provided further that the State Government concerned shall monitor and enforce the above condition as per the order issued by the State Government in this regard:

Provided also that in case of any violation or subsequent change of land use, due to any reason whatsoever, the original lessor, original lessee as well as any subsequent lessee or buyer or owner shall be jointly and severally liable to pay such amount of Union territory tax, as would have been payable on the upfront amount charged for the long term lease of the plots but for the exemption contained herein, along with the applicable interest and penalty:

Provided also that the lease agreement entered into by the original lessor with the original lessee or subsequent lessee, or sub- lessee, as well as any subsequent lease or sale agreements, for lease or sale of such plots to subsequent lessees or buyers or owners shall incorporate in the terms and conditions, the fact that the Union territory tax was exempted on the long term lease of the plots by the original lessor to the original lessee subject to above condition and that the parties to the said agreements undertake to comply with the same.”.

This notification has come into force on the 1st January, 2020.

For more details, please follow – Link

Notification No. 29/2019 – Union Territory Tax (Rate)
Date – 30th December 2019

To amend notification No. 13/ 2017- Union Territory Tax (Rate) so as to notify certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 38th meeting held on 18.12.2019

CBIC has made further amendments in the Notification No.13/2017- Union Territory Tax (Rate), dated the 28th June, 2017.

In the said notification, in the Table, for serial number 15 and the entries relating thereto, the following shall be substituted, namely: –

For more details, please follow – Link

CGST Circulars

Circular No. 129/48/2019 – GST
Date – 24th December 2019

Standard Operating Procedure to be followed in case of non-filers of returns – reg

• A system generated message would be sent to all the registered persons 3 days before the due date about filing of the return for the tax period by the due date.

• Once the due date for furnishing the return under section 39 is over, a system generated mail / message would be sent to all the defaulters immediately after the due date to the effect that the said registered person has not furnished his return for the said tax period. The said mail/message is to be sent to the authorized signatory as well as the proprietor/partner/director/karta, etc.

• 5 days after the due date of furnishing the return, a notice in FORM GSTR-3A shall be issued electronically to such registered person who fails to furnish return under section 39, requiring him to furnish such return within 15 days;

• In case the said return is still not filed by the defaulter within 15 days of the said notice, the proper officer may proceed to assess the tax liability of the said person under section 62 of the CGST Act, to the best of his judgement taking into account all the relevant material which is available or which he has gathered and would issue order under rule 100 of the CGST Rules in FORM GST ASMT-13. The proper officer would then be required to upload the summary thereof in FORM GST DRC07;

• For the purpose of assessment of tax liability under section 62 of the CGST Act, the proper officer may take into account the details of outward supplies available in the statement furnished under section 37 (FORM GSTR-1), details of supplies auto populated in FORM GSTR-2A, information available from e-way bills, or any other information available from any other source, including from inspection under section 71.

• In case the defaulter furnishes a valid return within thirty days of the service of assessment order in FORM GST ASMT-13, the said assessment order shall be deemed to have been withdrawn in terms of provision of sub-section (2) of section 62 of the CGST Act. However, if the said return remains unfurnished within the statutory period of 30 days from issuance of order in FORM ASMT-13, then proper officer may initiate proceedings under section 78 and recovery under section 79 of the CGST Act.

Circular No. 130/48/2019 – GST
Date – 31st December 2019

RCM on renting of motor vehicles

Suppliers of service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient have an option to pay GST either at 5% with limited ITC (of input services in the same line of business) or 12% with full ITC.

When any service is placed under RCM, the supplier shall not charge any tax from the service recipient as this is the settled procedure in law under RCM. There are only two rates applicable on the service of renting of vehicles, 5% with limited ITC and 12% with full ITC. The only interpretation of the notification entry in question which is not absurd would be that –

(i) where the supplier of the service charges GST @ 12% from the service recipient, the service recipient shall not be liable to pay GST under RCM; and,
(ii) where the supplier of the service doesn’t charge GST @ 12% from the service recipient, the service recipient shall be liable to pay GST under RCM.

Though a supplier providing the service to a body corporate under RCM may still be paying GST @ 5% on the services supplied to other non-body corporate clients, to bring in greater clarity, serial No. 15 of the notification No. 13/2017-CT (R) dated 28.6.19 has been amended vide notification No. 29/2019-CT (R) dated to state that RCM shall be applicable on the service by way of renting of any motor vehicle designed to carry passengers where the cost of fuel is included in the consideration charged from the service recipient only if the supplier fulfils all the following conditions:–

(a) is other than a body-corporate;

(b) does not issue an invoice charging GST @12% (6% CGST + 6% SGST) from the service recipient; and

(c) supplies the service to a body corporate.

For more details, please follow – Link

Customs –Tariff Notifications

Notification No.36/2019 – Customs
Date – 30th December 2019

Seeks to amend Customs Tariff notifications so as to align them with amended Customs Tariff

CBIC has directed that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table below shall be amended in the manner specified in the corresponding entry in column (3) of the said Table, namely: –

For more details , please follow – Link

Notification No.37/2019 – Customs
Date – 30th December 2019

Seeks to amend Customs Tariff notifications No. 50/2017-Customs dated dated the 30th June, 2017 so as to align them with amended Customs Tariff

CBIC has made further amendments in the Notification No. 50/2017- Customs, dated the 30th June, 2017.

For more details , please follow – Link

Notification No.38/2019 – Customs
Date – 30th December 2019

Seeks to amend Customs Tariff notifications No. 82/2017-Customs, dated the 27th October, 2017 so as to align them with amended Customs Tariff

CBIC has made amendments in the Notification No. 82/2017-Customs, dated the 27th October, 2017.

For more details , please follow – Link

Notification No.39/2019 – Customs
Date – 30th December 2019

Seeks to amend certain Customs Tariff notifications issued under section 110 of the Finance Act, 2018 (13 of 2018) so as to align them with amended Customs Tariff.

CBIC has directed that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table below shall be amended in the manner specified in the corresponding entry in column (3) of the said Table, namely: –

For more details , please follow – Link

Notification No.40/2019 – Customs
Date – 30th December 2019

Seeks to amend Customs Tariff notification No. 53/2017- Customs, dated the 30th June, 2017 so as to align them with amended Customs Tariff

CBIC has made amendments in the Notification No. 53/2017- Customs, dated the 30th June, 2017,

In the said notification, in the Table, against Sl. No. 4, for the entry in column (2), the entry “2710 19 39” shall be substituted.

This notification has come into force from the 1st January, 2020.

For more details , please follow – Link

Notification No.41/2019 – Customs
Date – 31st December 2019

Seeks to amend notification No. 46/2011-Customs dated 01.06.2011 so as to provide deeper tariff concessions in respect of specified goods when imported from ASEAN under the India-ASEAN Free Trade Agreement w.e.f. 01.01.2020.

CBIC has made further amendments in the Notification No.46/2011-Customs, dated the 1st June, 2011.

For more details , please follow – Link

Notification No.42/2019 – Customs
Date – 31st December 2019

Seeks to amend notification No. 53/2011-Customs dated 01st July, 2011 so as to provide deeper tariff concessions in respect of specified goods imported from Malaysia under the India-Malaysia Comprehensive Economic Cooperation Agreement (IMCECA) w.e.f. 01.01.2020

CBIC has made further amendments in the Notification No.53/2011-Customs, dated the 1st July, 2011.

For more details , please follow – Link

Customs – Non Tariff Notifications

Notification No.91/2019 – Customs (N.T.)
Date – 19th December 2019

Exchange Rates Notification No.91/2019-Custom (NT) dated 19.12.2019

CBIC has determined the rate of exchange of conversion of foreign currencies into Indian currency or vice versa, relating to imported and export goods.

SCHEDULE-I

For more details , please follow – Link

Notification No.92/2019 – Customs (N.T.)
Date – 31st December 2019

Tariff Notification in respect of Fixation of Tariff Value of Edible Oils, Brass Scrap, Poppy Seed, Areca nut, Gold & Silver – reg.

CBIC has made amendments in Notification No. 36/2001-Customs (N.T.), dated the 3rd August, 2001,

For more details , please follow – Link

Notification No 01/2020 – Customs (N.T.)
Date – 2nd January 2020

Exchange Rates Notification No.01/2020-Customs (NT) dated 02.01.2020

CBIC has determined the rate of exchange of conversion of foreign currencies into Indian currency or vice versa, shall, relating to imported and export goods.

For more details , please follow – Link

Customs – Anti Dumping Duty Notifications

Notification No. 46/2019-Customs (ADD)
Date – 19th December, 2019

Seeks to further amend notification No. 35/2018-Customs(ADD) regarding levy of anti-dumping duty on High Tenacity Polyester Yarn to amend the name of exporter name from ” M/s. Oriental Textile (Holding) Ltd.” to “M/s. Oriental Industries (Suzhou) Ltd”.

In case of High Tenacity Polyester Yarn (HTPY) falling under tariff item 5402 20 90 of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975), originating in, or exported from China PR, and imported into India, the Designated Authority had come to the conclusion that-

(i) the subject goods have been exported to India from the subject country below its normal value, resulting in dumping;

(ii) the domestic industry had suffered material injury due to dumping of the product under consideration from the subject country;

(iii) the material injury had been caused by the dumped imports of the subject goods from subject country.

and had recommended imposition of definitive anti-dumping duty on imports of HTPY, in order to remove injury to the domestic industry.

For more details , please follow – Link

Notification No. 47/2019-Customs (ADD)
Date – 19th December, 2019

Seeks to amend Anti Dumping notifications issued under section 9A of the Customs Tariff Act,1975 (51 of 1975), read with rules 13, 18 and 20 of the Customs Tariff (Identification, Assessment and Collection of Anti-dumping Duty on Dumped Articles and for Determination of Injury) so as to align them with amended Customs Tariff

CBIC has directed that each of the notifications of the Government of India in the Ministry of Finance (Department of Revenue), specified in column (2) of the Table below shall be amended in the manner specified in the corresponding entry in column (3) of the said Table, namely:-

For more details , please follow – Link

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