Reference: Central Board of Indirect Taxes and Customs
Update:
GST Rate on Goods as Recommended by The GST Council in Its 37th Meeting
GST rates reduction:
a. 18% to 12% on parts of Slide Fasteners
b. 18% to 5% on Marine Fuel 0.5% (FO)
c. 12% to 5% on Wet Grinders(consisting stone as a grinder)
d. 5% to Nil on:-
o Dried tamarind
o Plates and cups made up of leaves/ flowers/bark
e. 3% to 0.25% on cut and polished semi- precious stones
f. Applicable rate to 5% on specified goods for petroleum operations undertaken under Hydrocarbon Exploration Licensing Policy (HELP)
II. GST rates have been recommended to be increased from, –
a. 5% to 12% on goods, falling under chapter 86 of tariff like railway wagons, coaches, rolling stock (without refund of accumulated ITC). This is to address the concern of ITC accumulation with suppliers of these goods.
b. 18% to 28% +12% compensation cess on caffeinated Beverages
Implication:
The rate changes shall be made effective with effect from 1st October, 2019.
Update:
Recommendations of GST council related to law & procedure: The GST Council, in its meeting recommended the following Law & Procedure related changes:
- Composition Persons and Other Regular registered assessee having aggregate turnover upto Rs.2 crore for FY 2017-18 and FY 2018-19 may not furnish GSTR 9A and GSTR 9 respectively. Meaning thereby, filing of GST Returns made optional and not mandatory.
- New GST Returns, originally proposed to be inserted from 01.10.2019 now deferred and are to be inserted from 01.04.2020. Accordingly, GSTR 1 and GSTR 3B for the period October, 2019 to March, 2020 to continue till such time.
- Procedure in filing of refund application in Form RFD 01A to be revamped to give effect to :
• Effect of appeal matters.
• Application has already been filed for Nil Refund
• Clarification to be provided in respect of supply of Information Technology Enabled Services - Cancellation of circular no. 105/24/2019 dated 28.06.2019 being Post Supply Discount from very first date of its introduction.
- Single Window Refund System to be introduced from 24.09.2019.
Implication:
The same would be given effect through relevant Circulars/Notifications which alone shall have the force of law.
Update:
GST Rate on Services as Recommended by The GST Council in Its 37th Meeting:
- GST rate on hospitality and tourism revamped.
- GST rate on Job Work related services revamped.
- GST rate exemption provided in respect of storage / warehousing services to specific goods.
- Export of freight by air or sea – exemption extended upto 30.09.2020.
- GST exemption provided to insurance sector
- GST exemption extended to intermediary service provider if supplier and recipient of goods are outside taxable territory.
- Impetus provided to Indian Pharma companies carrying out R&D activities and providing services to foreign recipients.
- GST on securities lending service under RCM revamped.
READ MORE
Implication:
It is proposed to issue notifications giving effect to these recommendations of the Council on 1st October, 2019.
Reference: Central Board of Direct Taxes
Update:
Exemption to commission agents or traders operating under APMC S. 194N Income Tax
Central Government after consultation with the Reserve Bank of India, specified the commission agent or trader, operating under Agriculture Produce Market Committee (APMC), and registered under any Law relating to Agriculture Produce Market of the concerned State, who has intimated to the banking company or co-operative society or post office his account number through which he wishes to withdraw cash in excess of rupees one crore in the previous year along with his Permanent Account Number (PAN) and the details of the previous year and has certified to the banking company or co-operative society or post office that the withdrawal of cash from the account in excess of rupees one crore during the previous year is for the purpose of making payments to the farmers on account of purchase of agriculture produce and the banking company or co-operative society or post office has ensured that the PAN quoted is correct and the commission agent or trader is registered with the APMC, and for this purpose necessary evidences have been collected and placed on record.
READ HERE
Implication:
The notification shall be deemed to have come into force with effect from the 1st day of September, 2019
Reference: Reserve Bank of India
Update:
Harmonisation of Turn Around Time (TAT) and customer compensation for failed transactions using authorised Payment Systems:
RBI has harmonized TAT and customer compensation for failed transactions. Failure could be on account of various factors not directly attributable to the customer such as disruption of communication links, non-availability of cash in ATMs, time-out of sessions, noncredit to beneficiary’s account due to various causes, etc. Rectification / Compensation paid to the customer for these ‘failed’ transactions are not uniform.
Implication:
This will result in customer confidence and bring in uniformity in processing of the failed transactions.
Update:
Priority Sector Lending (PSL) – Classification of Exports under priority Sector:
In order to boost credit to export sector, it has been decided to
(i) Enhance the sanctioned limit, for classification of export credit under PSL, from ₹ 250 million per borrower to ₹ 400 million per borrower.
(ii) Remove the existing criteria of ‘units having turnover of up to ₹ 1 billion’ .
Implication:
The existing guidelines for domestic scheduled commercial banks to classify ‘Incremental export credit over corresponding date of the preceding year, upto 2 per cent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher’ under PSL will continue to be applicable subject to the criteria mentioned at (i) above.
There is no change in the present instructions in respect of foreign banks.
Reference: Securities and Exchange board of India
Update:
Risk management framework for liquid and overnight funds and norms governing investment in short term deposits:
In order to augment the risk management framework for liquid and overnight funds, the following has been decided that:
i. Liquid funds shall hold at least 20% of its net assets in liquid assets.
ii. Liquid Funds and Overnight Funds shall not park funds ending deployment in short term deposits of scheduled commercial banks.
iii. Liquid Funds and Overnight Funds shall not invest in debt securities having structured obligations (SO rating) and/ or credit enhancements (CE rating)
iv. Mutual Fund shall levy exit load on investors who exit the Liquid Fund within 7 days of their investment.
v. The cut-off timings for applicability of Net Asset Value (NAV) in respect of purchase of units in liquid and overnight funds shall be 1:30 p.m. instead of 2:00 p.m
Implication:
This provision will come into effect from April 1, 2020.
Reference: Insurance Regulatory and Development Authority of India
Update:
Guidelines on Filing of Minor Modifications in the approved Individual Insurance Products offered by General and Stand Alone Health Insurers on Certification Basis:
IRDAI vide exercising the powers vested in Section 34 (1) of Insurance Act, 1938 read with Regulation 2(i)(g) read with Regulation 2 (i)(o) of IRDAI (Health Insurance) Regulations, 2016 has issued Guidelines on Guidelines on Filing of Minor Modifications in the approved Individual Insurance Products offered by General and Stand Alone Health Insurers on Certification Basis Where Insurers require to carry out minor modifications in the approved individual insurance products, riders or Add-ons (hereafter referred as ‘approved individual products’), it is proposed to permit the Insurers to effect the minor modifications, on certification basis subject to complying these Guidelines.
Implication:
These Guidelines are applicable to the approved individual products of Health Insurance Business as defined in Section 2 (6C) of Insurance Act, 1938 offered by General and Health Insurers..
