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With the assent of the President on 12 April 2017, the following
Goods and Services Tax (GST) Bills have become Acts:
The GST (Compensation to States) Act,
2017
The Integrated GST Act, 2017
The Central GST Act, 2017
The Union Territory GST Act,
2017.
These Acts will be enforced from a date to be notified by the
government in the future.
Action on State GST Law
The State of Telangana became the first State to introduce and
pass the Telangana State Goods and Services Tax Bill, 2017 on 17
April 2017 during the special session of the state Legislative
Assembly.
Release of Frequently Asked Questions (FAQs)
The Central Board of Excise and Customs (CBEC) released the
second set of FAQs to assist various stakeholders in understanding
the GST law and its nuances.1
The Taxation Laws Amendment Bill, 2017 (Amendment Bill, 2017)
passed by the Lok Sabha
The Amendment Bill, 2017 has been passed by the Lok Sabha which
seeks to repeal certain laws and amend certain laws to make them
compliant with GST. The significant changes in relation to the key
enactments are:
The Customs Act, 1962
The scope of the definition of a customs area has been extended to
include a warehouse to ensure that an importer will not be liable
to pay Integrated GST (IGST) at the time of removal of goods from a
customs station to a warehouse.
The Customs Tariff Act, 1975
In order to provide a level playing field for the domestic
industry, IGST and GST Compensation Cess has been proposed to be
levied on imported products.
The Central Excise Act, 1944 (Excise
Act)
Consequent to the proposed repeal of this Act, a new Schedule,
namely the Fourth Schedule, has been proposed to be inserted to
provide for classification and duty rates for petroleum and tobacco
products which have been kept outside the GST ambit, few of which
are:
Petroleum crude;
Motor spirit (Petrol);
High-speed diesel;
Aviation turbine fuel;
Natural gas; and
Tobacco and tobacco products.
The abovementioned excisable goods will continue to attract
Central Excise Duty even after the proposed repeal of the other
Schedules in the Excise Act.
Furthermore, the following enactments have also been amended
suitably to accommodate GST changes/would be repealed:
The Central Sales tax Act, 1956
The Finance Act
The Water (Prevention and Control of
Water Pollution) Cess Act, 1977
The Sugar Cess Act, 1982
The Jute Manufacturers Cess Act,
1983.
Release of the draft Electronic Way (E-way) Bill Rules
The CBEC released the draft E-way Bill Rules. The E-Way Bill
will be required to be carried along with the goods that are being
transported, either physically or mapped to a Radio Frequency
Identification Device (RFID) embedded onto the conveyance, as may
be prescribed. Some important points in relation to the E-way Bill
Rules are:
E-way Bill will have to be issued for
all supplies of goods exceeding the value of INR 50,000. For goods
valued below INR 50,000, the E-way Bill will be optional.
The E-way Bill will have to be
prepared by the suppliers. In the case of unregistered persons, the
transporter or such unregistered person at their option will have
to prepare the E-way Bill.
The E-way Bill will have to
mandatorily be issued online on the GST website.
The recipient of goods, if he is a
registered recipient, will be required to communicate its
acceptance or rejection thereof within 72 hours of such information
being available on the GST network (GSTN) portal, else it would be
deemed to be accepted.
The validity period of the E-way Bill
will depend upon the distance involved for the transport of
goods.
Release of the draft Assessment and Audit Rules
The CBEC released the draft Assessment and Audit Rules which
provide various forms and procedures in relation to:
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guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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The Hon'ble bench further held that until any further orders, no coercive action would be taken against providers of legal services for non-compliance under the new indirect tax regime.
The Hon'ble Bombay High Court upheld a decision wherein a Mauritian entity was entitled to avail the beneficial provisions of the India Mauritius Tax Treaty in relation to capital gains arising from the sale of shares of an Indian company.
Transfer of unquoted equity shares for a value less than the fair market value attracts tax implications for the seller and the receiver, under the Income tax Act, 1961 (ITA).
The interaction of domestic tax systems of different countries and the bilateral tax treaties amongst them, sometimes have led to unintended overlaps and gaps.
CBDT had earlier issued a Circular clarifying that no tax shall be withheld on the service tax component comprised in the amount paid/payable to a resident if the same was indicated separately in the agreement/contract between the payer and the payee.
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