Red carpet entry of GST and gist of the various GST Notifications

Red-carpet entry of GST from July 1, 2017 and gist of the various GST Notifications

'India will now have one tax. GST is actually a Good and Simple Tax' Hon'ble Prime Minister, Shri Narendra Modi

When the clock struck midnight on June 30, 2017, the Country India witnessed the biggest indirect tax reform namely Goods and Services Tax ('GST') receiving a red carpet welcome in Parliament's Central Hall. It was a luxury welcome for the long-awaited GST, ending a 14-year struggle to enlist political support for a move that will replace around 17 federal and state levies and unify a country of 1.3 billion people into one of the world's biggest common markets.

Today is indeed a memorable and historic day for Country India.

Gist of the various GST Notifications:

Recently, the Government has released various Notifications under CGST, UTGST and IGST for giving kick start to the mammoth indirect tax reform in India. Various Notifications issued by the Government are as under:

We are summarizing herewith gist of the various Notifications for easy digest:

1. The Government has eased out requirement to mention HSN code of items in tax invoice under GST as mentioned in a table below:- 

2. The Government has fixed the rate of interest for the following cases as mentioned in table below:-

3. The Government has prescribed the list for the goods on which GST is applicable on reverse charge basis.

4. The Government has exempted the Intra-State supplies of goods or services or both received by a registered person from any supplier, who is not registered, from the whole of the GST leviable thereon, if amount of such supply from any or all the un-registered suppliers is upto Rs. 5,000 in a day.

5. The registered person may issue a consolidated invoice at the end of a month for all supplies from unregistered suppliers covered under RCM, where the aggregate value of such supplies exceeds Rs. 5,000 from any or all the suppliers.

6. The Government has exempted intra-State supplies of second hand goods received by a registered person, dealing in buying and selling of second hand goods and who pays the GST on the value of outward supply of such second hand goods, from any supplier, who is not registered, from the whole of the tax leviable thereon under RCM.

7. The Government has exempted intra-State supplies of goods/services received by a TDS deductor, from any supplier, who is not registered, from the whole of the tax leviable under RCM, subject to the condition that the deductor is not liable to be registered otherwise than under the category of mandatory registration

8. The rate of tax on services namely, 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, has been increased from 12% to 18%.

However, the requirement to include land value from computation of tax liability has been removed and it has been stated that the value of land or undivided share of land, as the case may be, in such supply shall be deemed to be 1/3rdof the total amount charged for such supply.

9. The Government has notified that, no refund of unutilized Input Tax Credit shall be allowed in relation to taxes paid on supply of services, relating to construction of complex, building, civil structure or 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.

10. The word 'room tariff & room rent' as mentioned in the rate schedules approved by the GST council has been replaced 'declared tariff'. With effect of this amendment, the GST rate applicable on room rent shall be determined based on declared tariff. However, tax shall be levied on the transaction value.

11. The Government notifies that in case of following categories of services, the GST on supplies shall be paid by the electronic commerce operator -

• Services by way of transportation of passengers by a radio-taxi, motor cab, maxi cab and motor cycle
• Services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under GST Act.

12. Rate of GST on fertilizers has been reduced from 12% to 5%.