Reference: Central Board of Indirect Taxes and Customs
Update:
Concessional UTGST, CGST and IGST rates to specified projects under HELP/OALP:
CBIC has vide notification dated 30.09.2019 has extended concessional UTGST, CGST and IGST rates on the intra-State supply of services of “Petroleum operations or coal bed methane operations undertaken under specified contracts under the Hydrocarbon Exploration Licensing Policy (HELP) or Open Acreage Licensing Policy (OALP)”
Implication:
Concessional UTGST, CGST and IGST rates to specified projects under HELP/OALP shall be applicable from 1st October, 2019
Update:
Amendment in Compensation Cess(Rate): The council raised tax on caffeinated beverages to 28% from 12% now and imposed a 12% Compensation cess.
Motor vehicles for the transport of not more than 13 persons (earlier 10 persons), including the driver, other than the vehicles of the description mentioned in S. No. 50 and 51”, shall be substituted shall attract 15 % Cess over GST.
No compensation cess for persons with orthopedic physical disability on following motor vehicles of length not exceeding 4000 mm, namely subject to certain conditions: –
(a) Petrol, Liquefied petroleum gases (LPG) or compressed natural gas (CNG) driven vehicles of engine capacity not exceeding 1200 cc; and
(b) Diesel driven vehicles of engine capacity not exceeding 1500 cc
Implication:
The same shall be effective from 1st October, 2019
Update:
No refund of unutilized ITC of compensation cess on Tobacco and manufactured tobacco substitutes:
CBIC has vide notification dated 30.09.2019 has disallowed the refund of unutilised input tax credit of compensation cess on Tobacco and manufactured tobacco substitutes, where the credit has accumulated on account of rate of compensation cess on inputs being higher than the rate of compensation cess on the output supplies of such goods (other than nil rated or fully exempt supplies)
Implication:
No refund of unutilised input tax credit of compensation cess on Tobacco and manufactured tobacco substitutes
Update:
Grant of alcoholic liquor licence is neither a supply of goods nor a supply of services:
CBIC has vide notification dated 30.9.2019 has notified following activities or transactions undertaken by the State Governments in which they are engaged as public authorities, shall be treated neither as a supply of goods nor a supply of service, namely:-
“Service by way of grant of liquor licence, against consideration in the form of licence fee or application fee or by whatever name it is called.\’
Implication:
The grant of alcoholic liquor licence neither a supply of goods nor a supply of service as per CGST Act, UTGST Act and IGST Act
Update:
Explanation relating to applicability of provisions of development rights: CBIC has made amendment to the notification by adding an explanation on the applicability of provisions related to supply of development rights. CBIC has explained that “Nothing contained in this notification shall apply with respect to the development rights supplied on or after 1 st April, 2019”
Implication:
Provisions of notification no. No.4/2018- Central Tax (Rate), notification No. 4/2018 Union Territory Tax(Rate) and Notification No.4/2018- Integrated Tax (Rate) shall not apply to the development rights supplied on or after 1st April, 2019
Update:
Amendment in Reverse Charged Mechanism: CBIC has notified certain services under reverse charge mechanism (RCM) as recommended by GST Council in its 37th meeting held on 20.09.2019.
Following services are covered under Reverse Charge Mechanism:-
Supply of services by a music composer, photographer, artist or the like by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of sub-section (1) of section 13 of the Copyright Act, 1957 relating to original dramatic, musical or artistic works to a music company, producer or the like.
Supply of services by an author by way of transfer or permitting the use or enjoyment of a copyright covered under clause (a) of Author Publisher located in the taxable territory: sub -section (1) of section 13 of the Copyright Act, 1957 relating to original literary works to a publisher.
Services provided by way of renting of a motor vehicle provided to a body corporate.
Services of lending of securities under Securities Lending Scheme, 1997 (“Scheme”) of Securities and Exchange Board of India (“SEBI”), as amended.
Implication:
Reverse Charge Mechanism will be applicable to Services mentioned in the notification from 1st October, 2019
Update:
Exemption to certain services under GST:
CBIC has exempted certain services as recommended by GST Council in its 37th meeting held on 20.09.2019. Following services are exempted:-
- Services provided by the Central Government, State Government, Union territory or local authority to a business entity with an aggregate turnover of up to such amount in the preceding financial year as makes it eligible for exemption from registration under the Central Goods and Services Tax Act, 2017 (12 of 2017)”.
- Services provided by and to Fédération Internationale de Football Association (FIFA) and its subsidiaries directly or indirectly related to any of the events under FIFA U-17 Women\’s World Cup 2020 to be hosted in India.
- Services by a hotel, inn, guest house, club or campsite, by whatever name called, for residential or lodging purposes, having declared tariff of a unit of accommodation equal to one thousand rupees per day or equivalent.
4.Services by way of storage or warehousing of cereals, pulses, fruits, nuts and vegetables, spices, copra, sugarcane, jaggery, raw vegetable fibres such as cotton, flax, jute etc., indigo, unmanufactured tobacco, betel leaves, tendu leaves, coffee and tea. - Services of life insurance provided or agreed to be provided by the Central Armed Police Forces (under Ministry of Home Affairs) Group Insurance Funds to their members under the Group Insurance Schemes of the concerned Central Armed Police Force.
- Services of general insurance business provided under following schemes – Bangla Shasya Bima
- Services by way of right to admission to the events organised under FIFA U-17 Women\’s World Cup 2020.
Implication:
Intra-State supply of services mentioned in the notifications shall be exempted.
Update:
Notified GST rate of services relating to Accommodation, Food and beverage: CBIC has vide notification dated 30.09.2019 has made amendment in the notification No. 11/2017- Union Territory Tax (Rate) to notify GST rates of services relating to Accommodation, food and beverage.
Implication:
GST at the rate notifed for the services relating to Accommodation, food and beverage shall be applicable from 1st October, 2019
Update:
Exemption from GST for supply of goods for specified projects under FAO:
CBIC on recommendation by GST Council in its 37th meeting held on 20.9.2019 has exempted all the goods supplied to the Food and Agricultural Organisation of the United Nations (FAO) for execution of projects listed below in the Annexure, from whole of the Union territory tax leviable thereon under section 7 of the said Act, subject to the condition that an officer not below the rank of Deputy Secretary to the Government of India in the Ministry of Ministry of Agriculture and Farmers Welfare certifies, namely:-
(i) the quantity and description of the goods; and
(ii) that the said goods are intended for the purpose of use in execution of said projects.
ANNEXURE
(1) Strengthening Capacities for Nutrition-sensitive Agriculture and Food systems,
(2) Green Ag: Transforming Indian Agriculture for Global Environment benefits and the conservation of Critical Biodiversity and Forest landscape
Implication:
Supply of goods for specified projects under FAO shall be exempted from whole of Union Territory tax, Central tax and Integrated Tax applicable from 1st October, 2019
Update:
CBIC has excluded manufacturers of aerated waters from the purview of composition scheme.
Implication:
Manufactures of aerated waters from will not be eligible for Composition scheme.
Update:
Exemption from UTGST, CGST and IGST on the supplies of silver and platinum by nominated agencies to registered persons:
CBIC has exempted UTGST, CGST and IGST on supplies of silver and platinum by nominated agencies to registered persons.
Implication:
Supplies of gold, silver or platinum by nominated agencies to registered persons shall be exempted from UTGST, CGST and IGST
Update:
Supply of dried tamarind and cups, plates made of leaves, bark and flowers of plants exempted from UTGST, CGST and IGST:
CBIC has exempted intra-State supplies of dried tamarind and Plates and cups made up of all kinds of leaves/ flowers/bark from the whole of the Union territory tax, Central Tax and Integrated Tax
Implication:
Supply of dried tamarind and cups, plates made of leaves, bark and flowers of plants shall be exempted from UTGST, CGST and IGST
Update:
Effective rate of UTGST, CGST and IGST on specified Goods: CBIC on the recommendations of the GST Council in its 37th meeting dated 20.09.2019 has specified effective UTGST, CGST and IGST rates for goods specified in the notification.
Reference: Ministry of Corporate Affairs
Update:
Companies (Registration Offices and Fees) Fifth Amendment Rules, 2019:
Central Government made the Companies (Registration Offices and Fees) Fifth Amendment Rules, 2019 further to amend the Companies (Registration Offices and Fees) Rules, 2014 which state that No fee shall be payable in respect of e-form DIR-3 KYC or DIR-3 KYC-WEB through web service till 14th October, 2019.
Implication:
No fee shall be payable for e-form DIR-3 KYC or DIR-3 KYC WEB till 14th October 2019
Update:
Companies (Appointment and Qualification of Directors) Fourth Amendment Rules, 2019:
For the financial year ending on 31st March, 2019, the individual shall submit e-form DIR-3 KYC or web form DIR-3 KYC-WEB, as the case may be, on or before the 14th October, 2019.
Implication:
The last date for filing DIR-3 KYC for Financial year 2018-19 has been extended till 14th October 2019
Reference: Reserve Bank of India
Update:
RBI cancels Certificate of Registration of 26 NBFCs:
RBI, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has cancelled the Certificate of Registration of the following companies:
SPML India Limited
Padmanabham Leasing & Financials Private Limited
Yaduvanshi Investments Limited (Presently known as Yaduvanshi Investments Private Limited)
Walter Niryat Private Limited
Vedanga Vinimoy Private Limited
Manbir Fincon Private Ltd.
Turrant Fincap Limited
Young Street Capital Services Private Limited
Sumesh Financiers Private Limited
Wide Finance and Leasing Private Limited
Yashika Finlease and Holdings Private Limited
Wellcome Portfolio Limited
Sahas Financial Services Pvt. Ltd.
Sharda Capsec Limited
Blue Chip India Ltd.
R.A.S. Associates Private Limited (presently known as R.A.S. Associates Ltd.)
BPS Financiers & Consultants Ltd.
Atal Securities Private Limited
SubhDeep Finlease Private Limited
Suren Electronics & Electricals Private Limited
Shine Blue Deposits and Investments Private Limited
Sunbeam Control Systems Private Limited
Singer India Trading Limited
Savitri Finlease And Securities Limited
Sudvin Finvest Fairdeals Private Limited
Omsons Traders Pvt. Ltd.
Implication:
As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Update:
Extension of direction period- The Maratha Sahakari Bank Ltd, Mumbai, Maharashtra:
The Maratha Sahakari Bank Ltd, Mumbai was placed under directions from close of business on August 31, 2016 vide directive dated August 31, 2016. The validity of the directions was extended from time to time vide subsequent Directives, the last being Directive dated March 25, 2019 and is valid upto September 30, 2019 subject to review shall continue to apply to the bank for a further period of 3 months from October 01,2019 to December 31, 2019.
Implication:
The bank shall follow the direction issued by RBI for further period of 3 months till 31st December, 2019
Update:
Extension of Direction Period- The CKP Co-operative Bank Ltd, Mumbai, Maharashtra:
The CKP Co-operative Bank Ltd, Mumbai, Maharashtra, was placed under directions vide directive dated April 30, 2014, from close of business on May 2, 2014. The validity of the directions was extended from time to time vide subsequent Directives, the last being vide Directive dated June 24, 2019 and was valid upto September 30, 2019 subject to review shall continue to apply to the bank for a further period of one month from October 01, 2019 to October 31, 2019.
Implication:
The bank shall follow the direction issued by RBI for further period of 1 months till 31st october, 2019
Update:
Extension of Direction Period- The CKP Co-operative Bank Ltd, Mumbai, Maharashtra: The CKP Co-operative Bank Ltd, Mumbai, Maharashtra, was placed under directions vide directive dated April 30, 2014, from close of business on May 2, 2014. The validity of the directions was extended from time to time vide subsequent Directives, the last being vide Directive dated June 24, 2019 and was valid upto September 30, 2019 subject to review shall continue to apply to the bank for a further period of one month from October 01, 2019 to October 31, 2019.
Implication:
The bank shall follow the direction issued by RBI for further period of 1 months till 31st october, 2019
Update:
Two NBFCs surrender their Certificate of Registration to RBI:
Jagrati Trade Services Private Limited and Madan Mohan Lall Shriram Private Limited have surrendered the Certificate of Registration granted to them by the Reserve Bank of India. The Reserve Bank of India, in exercise of powers conferred on it under Section 45-IA (6) of the Reserve Bank of India Act, 1934, has therefore cancelled their Certificate of Registration.
Implication:
As such, the above companies shall not transact the business of a Non-Banking Financial Institution, as defined in clause (a) of Section 45-I of the RBI Act, 1934.
Update:
WMA Limit for Government of India for the second half of the Financial Year 2019-20 (October 2019 to March 2020):
RBI has decided that that the limits for Ways and Means Advances (WMA) for the second half of the financial year 2019- 20 (October 2019 to March 2020) will be Rs. 35,000 crore.
The Reserve Bank may trigger fresh floatation of market loans when the
Government of India utilises 75 per cent of the WMA limit.
