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V. Imp - Recommendations of the 26th GST Council Meeting held on 10/03/2018
 
 

 

CHEMEXCIL
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(Set-up by Ministry of Commerce and Industry, Govt of India)

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EPC/LIC/26th GST_Council  

   12th March 2018

 

 

ALL THE  MEMBERS OF THE COUNCIL

 

 

 

V. Imp

 

 

Recommendations of the 26th GST Council Meeting held on  10/03/2018

 

  • Extension of tax exemptions for exporters for six months and deferment of the implementation of the e-Wallet scheme by 6 months i.e., up-to 01.10.2018  
  •  

Introduction of e-way bill for inter-State movement of goods across the country from 01st April 2018

 

  • GSTR 3B and GSTR 1 is extended for another three months i.e., April to June, 2018
  •  
  • Reverse charge Mechanism (RCM)  deferred till 30.06.2018
  • TDS /TCS) shall remain suspended till 30.06.2018.

 

 

 

Dear Members,

 

 

Kindly note  that the 26th Meeting of GST Council was held on 10th March, 2018 wherein several recommendations have been made pertaining to implementation of e-way bill,  exporters tax exemptions,  RCM, GSTR-3b/ GSTR-1 etc.

 

 

As per the press releases issued by PIB & CBEC, the various recommendations are highlighted/ reproduced as follows for your reference:

 

 

  • Extension of Tax exemptions for exporters for six months  & deferment of  the implementation of the e-Wallet scheme by 6 months i.e., up-to 01.10.2018  

 

 

As you are aware, to address the liquidity issues of exporters, an interim solution was found by re-introduction of  the pre-GST tax exemptions on such imports. Additionally, for merchant exporters a special scheme of payment of GST @ 0.1% on their procured goods was introduced. Also, domestic procurement made under Advance Authorization, EPCG and EOU schemes were recognized as 'deemed exports' with flexibility for either the suppliers or the exporters being able to claim a refund of GST / IGST paid thereon. All these avenues were made available up-to 31.03.2018.

 

The permanent solution agreed to by the Council was to introduce an e-Wallet scheme w.e.f. 01.04.2018. The e-Wallet scheme is basically the creation of electronic e-Wallets, which would be credited with notional or virtual currency by the DGFT. This notional / virtual currency would be used by the exporters to make the payment of GST / IGST on the goods imported / procured by them so their funds are not blocked.

 

In this regard,  a Working Group with representatives of Central and State Governments was formed  to operationalize the e-Wallet scheme. After reviewing the progress, the Council appreciated has noted that this would require more time.  Accordingly, the Council has agreed to:

 

  • Defer the implementation of the e-Wallet scheme by 6 months i.e., upto 01.10.2018; and

 

(b)   Extend the present dispensation in terms of exemptions etc. which is available up to 31.03.2018, for a further 6 months i.e., upto 01.10.2018.

 

Introduction of e-way bill for inter-State movement of goods across the country from 01st April 2018

 

GST Council has also recommended the introduction of e-way bill for inter-State movement of goods across the country from 01st April 2018. For intra-State movement of goods, e-way bill system will be introduced w.e.f. a date to be announced in a phased manner but not later than 01st June, 2018.  Major improvements over the last set of rules are as follows:

 

  • E-way bill is required to be generated only where the value of the consignment exceeds Rs. 50000/-. For smaller value consignments, no e-way bill is required.
  •  
  • The provisions of sub-rule (7) of Rule 138 will be notified from a later date. Therefore, at present there is no requirement to generate e-way bill where an individual consignment value is less than Rs. 50,000/-, even if the transporter is carrying goods of more than Rs. 50,000/- in a single conveyance.

 

  • Value of exempted goods has been excluded from value of the consignment, for the purpose of e-way bill generation.
  •  
  • Public conveyance has also been included as a mode of transport and the responsibility of generating e-way bill in case of movement of goods by public transport would be that of the consignor or consignee.

 

  • Railways has been exempted from generation and carrying of e-way bill with the condition that without the production of e-way bill, railways will not deliver the goods to the recipient. But railways are required to carry invoice or delivery challan etc.
  •  
  • Time period for the recipient to communicate his acceptance or rejection of the consignment would be the validity period of the concerned e-way bill or 72 hours, whichever is earlier.

 

  • In case of movement of goods on account of job-work, the registered job worker can also generate e-way bill.
  • Consignor can authorize the transporter, courier agency and e-commerce operator to fill PART-A of e-way bill on his behalf.

 

  • Movement of goods from the place of consignor to the place of transporter up to a distance of 50 Km [increased from 10 km] does not require filling of PART-B of e-way bill.They have to generate PART-A of e-way bill.
  • Extra validity period has been provided for Over Dimensional Cargo (ODC). 

 

  • If the goods cannot be transported within the validity period of the e-way bill, the transporter may extend the validity period in case of transhipment or in case of circumstances of an exceptional nature.
  •  
  • Validity of one day will expire at midnight of the day immediately following the date of generation of e-way bill.

 

  • Once verified by any tax officer, the same conveyance will not be subject to a second check in any State or Union territory, unless and until, specific information for the same is received.
  •  
  • In case of movement of goods by railways, airways and waterways, the e-way bill can be generated even after commencement of movement of goods.

 

  • Movement of goods on account of Bill-To-Ship-To supply will be handled through the capturing of place of despatch in PART-A of e-way bill.
  •  
  • Return filing System
  •  

The present system of filing of GSTR 3B and GSTR 1 is extended for another three months i.e., April to June, 2018 till the new return system is finalized. A new model was discussed extensively and Group of Ministers on IT has been tasked to finalize the same.

 

  • Reverse charge mechanism (RCM)
  •  

The liability to pay tax on reverse charge basis has been deferred till 30.06.2018. In the meantime, a Group of Ministers will look into the modalities of its implementation to ensure that no inconvenience is caused to the trade and industry.

 

  • TDS/TCS
  •  

The provisions for deduction of tax at source (TDS) and collection of tax at source (TCS) shall remain suspended till 30.06.2018. In the meantime, the modalities of linking State and Central Governments accounting system with GSTN will be worked out so that seamless credit is available to the registered traders whose tax is deducted or collected at source.

 

  • Grievance Redressal Mechanism
  •  

GST implementation Committee (GIC) has been tasked with the work of redressing the grievances caused to the taxpayers arising out of IT glitches.

 

Members are requested to kindly take note of the above recommendations of the 26th GST Council meeting.   The  notifications by CBEC/ DGFT pertaining to above recommendations  shall be mailed to you in due course, once issued.   In the interim,  members may also refer to the  CBEC press releases  available for download using below links.

 

http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-release-exporter-extension-10march2018.pdf

http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-note-return-RCM-TDS.pdf

http://www.cbec.gov.in/resources//htdocs-cbec/gst/press-note-e-way-bill.pdf

 

 

Thanking you,

 

Yours faithfully,

 

(S.G BHARADI)
EXECUTIVE DIRECTOR
CHEMEXCIL

 

 

 

 

 

 

 

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