Extends the due dates for monthly furnishing of FORM GSTR-1 for taxpayers with aggregate turnover of more than Rs.1.5 crores.

[To be published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i)]


Government of India
Ministry of Finance
(Department of Revenue)
[Central Board of Excise and Customs]
Notification No. 72/2017 – Central Tax

New Delhi, the 29th December, 2017


G.S.R. (E):—   In   exercise   of   the   powers   conferred   by   the   second   proviso   to   sub-

section (1) of section 37 read with section 168 of the Central Goods and Services Tax Act, 2017 (12 of 2017) (hereinafter in this notification referred to as the Act) and in supersession of notification No. 58/2017 – Central Tax dated the 15th November, 2017, published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section (i), vide number G.S.R 1414 (E), dated the 15th November, 2017, except as respects things done or omitted to be done before such supersession, the Commissioner, on the recommendations of the Council, hereby extends the time limit for furnishing the details of outward supplies in FORM GSTR-1 under sub-section (1) of section 37 of the Act for the months as specified in column (2) of the Table, by such class of registered persons having aggregate turnover of more than 1.5 crore rupees in the preceding financial year or the current financial year, till the time period as specified in the corresponding entry in column (3) of the said Table, namely:-

Sl No. Months for which the details in Time period for furnishing the details in FORM
FORM GSTR-1 are furnished GSTR-1
(1) (2) (3)
1 July – November, 2017 10th January, 2018
2 December, 2017 10th February, 2018
3 January, 2018 10th March, 2018
4 February, 2018 10th April, 2018
5 March, 2018 10th May, 2018

  1. The extension of the time limit for furnishing the details or return, as the case may be, under sub-section (2) of section 38 and sub-section (1) of section 39 of the Act, for the months of July, 2017 to March, 2018 shall be subsequently notified in the Official Gazette.

[F. No. 349/58/2017-GST(Pt.)]

(Ruchi Bisht)

Under Secretary to the Government of India


Assessee is Eligible for Interest on Excess Amount Paid on Self-Assessed Tax: Kerala HC

A two-judge bench of the Kerala High Court in The Commissioner of Income-Tax, Thiruvananthapuram v. The Kerala Minerals And Metals Ltd, held that the assessee would be entitled to the interest on the excess tax paid under self-assessment under the Income Tax Act, 1961. Assessee, in the instant case, made a self-assessment of tax and paid tax, far in excess of that determined under the regular assessment. Subsequently, the assessee claimed refund of the amount along with interest. However, the department rejected the claim and said that no interest can be granted on account of excess tax paid under self-assessment. Aggrieved by the order, the assessee approached the High Court.

Justice K Vinod Chandran and Justice Ashok Menon noticed that the issue has already been settled by the division bench while deciding W.A No.817/2010 dated 08.10.2013 wherein it was held that “The argument is that going by the explanation to Section 244A (1) (b) of the Income Tax Act the liability to pay interest is only in respect of the tax paid after a demand is made under section 156 of the Act. We do not think that such a differentiation can be made to the aforesaid provision and explanation does not give a different meaning at all. Any amount due to the assessee under the Act mentioned in section 244(1) clearly takes in all forms of refund, either self assessed tax or tax paid as per notice under Section 156 of the Act. As far as the explanation is concerned it only indicates the date on which the interest is liable to paid. That being the position, we do not think that there is any illegality or perversity in the judgment of the learned Single Judge.” Following the above decision, the bench allowed the petition and held in favour of the assessee.

Source: http://www.taxscan.in/assessee-eligible-interest-excess-amount-paid-self-assessed-tax-kerala-hc/14954/

GST: Centre not releasing Punjab’s share of Rs 3500 cr, says Sunil Jakhar

Punjab Congress chief Sunil Jakhar alleged today that the Union government was not releasing Rs 3500 crore share due to the state from the Goods and Services Tax (GST).

“The Union Government is not releasing Rs 3500 crore share of Punjab from GST, which has been adversely impacting the social welfare schemes of the state government,” Jakhar said in a statement.

The Gurdaspur MP alleged that the Modi government was delaying the release of GST share to non-BJP ruled states.

“Instead of building their own image among the people of the country through their works, the Narendra Modi government at the Centre wants to pressurise its opponents at any cost,” Jakhar alleged.

 He said that GST system was implemented by the Modi government in such a manner “that it has crippled the industry and the trade”.

Jakhar alleged that the Centre had proved completely unsuccessful on the economic front.

To hide its weaknesses, the Centre is now creating hindrances for the non-BJP ruled state governments, he claimed.

Source : http://www.moneycontrol.com/news/business/economy/gst-centre-not-releasing-punjabs-share-of-rs-3500-cr-says-sunil-jakhar-2452985.html

Government rules out review of GST for restaurants

NEW DELHI: The government has ruled out the possibility of any review in the goods and service tax (GST) regime for restaurants, amid intense lobbying by a section of the eateries to restore the benefit of input tax credit (ITC).

Representatives of the National Restaurant Association of India (NRAI), whose members are facing intense criticism from the government for jacking up menu prices, met the finance ministry brass 10 days ago to give their reason for a price increase, after the government cut the levy to 5 per cent for all restaurants. The restaurants, which belong to newer chains, have argued for a restoration of ITC, while blaming the withdrawal of the benefit for an increase in prices.

Government sources, however, told TOI that there was no question of a review as the extent of price increase was unjustified. In fact, a senior official had told TOI earlier that restaurants were behaving in an anti-competitive manner and the government would look at the possibility of an anti-profiteering action for not passing on the ITC benefit in July, when GST kicked in. Government officials said only NRAI members are complaining, while all other major associations have welcomed the move as it reduces paperwork.

On their part, the chains that are part of the NRAI, said that rent payment was a substantial part of their overall spend, which in some cases added up to 18-20% of the cost and denying ITC on this component was not fair.

Similarly, a top restaurateur said even furniture and electrical and electronic goods faced high GST levy, which in some cases was 28%, but there was no ITC benefit.

Another owner of a chain of restaurants said he had put expansion on hold as the cost arithmetic had changed after the government chose to withdraw the ITC benefit, which was backed by a panel of state finance ministers. But the GST Council, headed by finance minister Arun Jaitley with all state FMs as members, opted for a flat 5 per cent levy for all restaurants, barring five-star hotel ones.
Source : https://timesofindia.indiatimes.com/business/india-business/govt-rules-out-review-of-gst-for-restaurants/articleshow/61907044.cms

Assocham for hydropower GST at par with other renewables

Industry body Assocham has urged the Centre to fix Goods and Services Tax (GST)rate for hydropower at par with wind and solar so that value added cost and tax commensurate for all renewable power projects.

“Hydro projects attract 18 per cent GST for equipment and 28 per cent for cement while the same for solar is made five per cent Engineering, Procurement and Construction (EPC) which has a glaring additional cost impact on power produced from hydro projects,” noted an Assocham paper titled ‘Need for Hydropower in India – Industry Submission.’ It also said EPC contracts for hydro should be categorised under five per cent GST.

Currently, electricity at the consumer end or at discom end does not attract any GST and therefore the last leg of consumption of GST is with the generator. The paper was released by Power Minister R K Singh at an ‘Assocham Round Table Discussion on Hydro Power in India’, here last evening.

Assuring the hydro industry players of looking into the demands of the sector, Singh informed that the Centre’s hydro policy was in final stage which would be sent for Cabinet approval within a fortnight. The paper suggested that transmission charges for hydro projects should be energy based. It said solar and wind get freewheeling for approximately 20 per cent plant load factor (PLF) while hydro projects have to pay transmission charges based on capacity. It also recommended that states should waive free power requirement as that would reduce hydro tariff in initial years and make it more viable and competitive.

Besides, the note said hydro projects should be awarded on build, operate and own (BOO) basis for private sector instead on the basis of build own operate and transfer (BOOT).

Further, the paper suggested for payment security as given to solar projects to be extended to hydro which also requires firm power purchase agreement (PPA).

Though the hydro projects lead to development of remote locations and build a lot of social/enabling infrastructure around them, it burdens the project while same is not with other renewable generation, the paper noted.

“Thus social/enabling infrastructure cost should be funded by Hydro Development Fund or National Clean Energy Fund (NCEF) as defined in proposal to Expenditure Finance Committee (EFC) thereby limiting it to indicative list of projects in that proposal,” the paper said.

The paper also stressed that an online, time-bound single window approval and clearance should be the mandate for developing hydro power sector and the same may be recommended to all states.

“This will facilitate transparency, accountability, efficiency and significantly improve ease of doing business,” it said.

Source : http://www.moneycontrol.com/news/business/economy/assocham-for-hydropower-gst-at-par-with-other-renewables-2451117.html

Manufacturing back in business, shrugs off GST, demonetisation blues

Stunning. That was the only word to describe the number flashing on television screens on the evening of August 31 this year. The first-quarter GDP numbers had just been released and growth had slipped to 5.7%, a three-year low.

While that in itself was shocking, what was even more stupefying was the collapse of manufacturing. Quarterly gross value added (GVA) growth for the sector slipped to 1.2% compared with 10.7% in the previous year. 1.2%!, that’s it.

Private sector growth, deduced from the data available from listed companies on the stock exchanges was even more stunning.

A negative 0.9% compared with a 10.2% growth in year-ago period! It took some time for the numbers to sink in. But when it did, the full extent of the problems in manufacturing induced by GST rollout became apparent. Businesses had stopped or sharply cut back production of goods in May-June ahead of the GST rollout on July 1. Small businesses still facing demonetisation after-effects suffered even more and that was fully reflected in the data captured by government’s statisticians.

Cut to November and the picture has changed. On Thursday, the second quarter GDP estimates were released showing a smart bounce in GDP and manufacturing. GVA for manufacturing rose 7% in the quarter compared with 1.2% in April-June, while private sector corporate growth was a healthy 11.4%. Of course, the numbers were still lower than 7.7% manufacturing growth in second-quarter of 2016/17 when the economy was humming along before the demonetisation shock in November last year. So there is a lot of room to do more. This is obviously not the best performance and one should refrain from celebrating too much or calling this a spectacular turnaround. But there is no doubt that the woes caused by GST and demonetisation, at least for big and medium manufacturers, have ebbed and that they are on the cusp of faster growth.

Consider the following: GVA for mining and quarrying grew 5.5%, the highest growth rate the sector has posted in the first-half of the fiscal year since 2015/16. Electricity, gas water supply and utilities recorded a growth of 7.6% in GVA compared with 5.1% in the year-ago quarter.

The star performer here was electricity which grew by 6.1% in July-September compared with 3.1% last year.

Commercial vehicle sales jumped 21% in the second-quarter, while cargo handled by civil aviation grew by 18.9%; railway freight growth measured by net tonne kilometres was up 5.0%. Construction has been having a bad time but second-quarter numbers show that it has actually held up quite well. Now, construction here covers cement production, consumption of finished steel. These haven’t grown as much as the previous year but the category has grown 2.6%, which is up from 2.0% growth in the first-quarter.

An interesting anomaly needs to be mentioned here and that is the discrepancy between the cement production data and the actual volume growth reported by major cement companies in the three-months ended September 30.

Almost all the big cement firms reported double-digit volume growth in the second-quarter with ACC and UltraTech volumes rising 18% followed by Gujarat Ambuja’s 12% growth. Smaller JK Lakshmi Cement too reported 10% volume growth. New capacities through mergers helped support this growth but still this is surprising as the second-quarter is generally weak for cement companies due to monsoon and dull construction activity across the country. So one shouldn’t read too much into the dip in cement production and I think a fuller analysis is needed to understand the demand conditions for cement companies.

On Thursday, we had another interesting data release and that was the performance of core industries. The eight core industries, that is cement, steel, fertiliser, natural gas, crude oil, refinery products, coal and electricity grew by 4.7%, compared with 7.1% last year. The figure was the same as previous month and the joint highest growth for this fiscal year. Once again, it shows a revival in manufacturing led by steel, refinery products, coal and electricity.

Source : https://economictimes.indiatimes.com/news/economy/policy/manufacturing-back-in-business-shrugs-off-gst-demonetisation-blues/articleshow/61871901.cms

Economy shakes off Demonetisation & GST impacts with 6.3% growth

NEW DELHI: India’s growth staged a recovery in the September quarter as the economy emerged from the shadows of the impact of demonetisation and rollout issues linked to GST, prompting the government to say that it was poised for a durable recovery in the months ahead.

Data released by the Central Statistics Office (CSO) on Thursday showed that the economy grew 6.3% in July-September, the second quarter of the current fiscal year — faster than the June quarter’s 5.7% —the expansion led by robust manufacturing. Growth had slowed to a three-year low in Q1 as the impact of demonetisation and GST implementation issues hurt expansion.

Since then, a raft of positive news has lifted sentiment. India improved its ranking significantly in the World Bank’s Ease of Doing Business survey while global ratings agency Moody’s Investor Services upgraded the country’s sovereign rating. Another agency S&P kept the rating and the outlook unchanged but applauded the reform measures unleashed by the government which it said should help boost growth in the coming months.

“The deceleration trend in the overall growth which was witnessed since the first quarter of last fiscal year has been now reversed; The acceleration in growth this quarter has been helped by a rapid growth in manufacturing which increased from 1.2% in the first quarter to 7% in the second quarter,” finance minister Arun Jaitleysaid, exuding confidence that the momentum would be sustained.

The upbeat GDP data comes in the midst of the Gujarat assembly poll campaigning where opposition parties have sought to use the slowdown narrative to attack the BJP. The rebound in growth is expected to act as a major boost for the BJP and help reassert prime minister Narendra Modi’s reformist credentials. The 6.3% growth in the September quarter has helped break the cycle of 5 quarters of slowing growth. “It is quite a significant trend reversal,” the country’s chief statistician T C A Anant told reporters.

“I would expect the overall dynamics to reassert itself and the growth path to return to more normal level and that is in some sense happening,” he said. Economists pointed to several positive signals such as a good kharif crop, boost to manufacturing due to GST concessions. They expect growth to be closer to 7% for the full year.

The sluggishness in the farm sector emerged as a concern. The farm sector grew 1.7% in the September quarter, slower than the previous quarter’s 2.3% and below the 4.1% in the second quarter of 2016-17.

“The clear conclusion that one can draw is that the value added originating from the rural sector has slowed more sharply than the urban sector for the first half. Overall the source of growth in the first half has been the urban areas. However certain important schemes such as the Bharatmala, low cost housing in rural areas are expected to mitigate the trend,” said Soumya Kanti Ghosh, group chief economic adviser at State Bank of India.

“Nevertheless the policy prescription for the next the coming budget should be that the rural focus of the previous two budgets must continue. There is also a need to prioritize certain rural schemes on an urgent basis. The doubling of farm income must receive the thrust,” he said.

The mining sector also displayed strong signs of a turnaround rising an annual 5.5% in the three months to September compared with a decline of 0.7% in the previous quarter and contraction of 1.3% in the second quarter of 2016-17. “While improving modestly, construction stood out as the slowest growing of the industrial sub-sectors in the second quarter of FY2018. Weak consumer sentiment, led by factors such as the demonetisation-led drag, the full implementation of the RERaD Act, from May 1, 2017, and the implementation of the GST from July 1, 2017, weighed upon the performance of the construction sector,” said Aditi Nayar, principal economist at ratings agency ICRA.

Madan Sabnavis, chief economist with Care ratings pointed to the sluggishness in investment where gross fixed capital formation has fallen from 27.1% to 26.4% which he said was reflective of the absence of private investment in abig way.

“Quite clearly the government needs to fill the gap to keep the investment number ticking. The real estate/construction sector would also have to closely as watched as this segment has been affected by a combination of reforms including demonetization, RERA, GST which hopefully is temporary. A recovery in this segment will help substantially,” he said.

India Inc termed the growth rebound as a “great confidence booster.” Some economists sounded caution. “Administrative issues related to tax refunds under GST and repeated changes being made to the structure/tax rates continue to lead to uncertainty for businesses and may weigh on growth in the road ahead, particularly for small scale units. That would have negative implications for employment,” ratings agency Crisil said in note.
Source : https://timesofindia.indiatimes.com/business/india-business/economy-shakes-off-demonetisation-gst-impacts-with-6-3-growth/articleshow/61872014.cms

October GST collections down to Rs 83,346 crore as compared to Rs 92,000 crore in September

As many as 17 days have passed since the GST Council slashed tax on as many as 200 items, and the latest GST collections figures are here. A finance ministry statement said the total collection on the Goods and Service Tax (GST) for October slipped by almost 10 per cent to Rs 83,346 crore as compared to Rs 92,000 crore in the previous month.

In a major rejig of GST rates, Finance Minister Arun Jaitley on November 10 announced a 10 per cent cut in tax on over 200 goods ranging from chocolates to cosmetics to artificial fur coats and wrist watches. As many as 50.1 lakh Goods and Services Tax (GST) returns were filed for October. The ministry attributed the drop in collections to rates on several commodities being cut and tax administration being based on self-declaration as matching of returns, electronic transit permit system or e-way bill and reverse charging being postponed.

Also, there was additional tax inflow on inter-state movement of goods, called Integrated-GST or IGST, in the first three months. The GST, which was implemented from July 1, has subsumed over a dozen central and state levies including excise duty, service tax and VAT. The revenues collected are split between the Centre and states in a pre-decided formula.

The finance ministry said Rs 10,806 crore was released to states from the revenue collected from levy of cess on luxury and sin goods, in July and August. A compensation of Rs 13,695 crore for September and October is being released, it added. The compensation is to make up for any loss of revenue to the states arising from implementation of the GST. “The states’ revenues have been fully protected taking base year revenue as 2015-16 and providing a projected revenue growth rate of 14 per cent,” the ministry said.

As per official data available, GST collections in the maiden month of July was over Rs 95,000 crore while in August, the figure was over Rs 91,000 crore. In September, it was over Rs 92,150 crore. October is the fourth month of GST rollout. Explaining the downward trend in tax revenue under GST, the ministry said initially Integrated GST was paid on transfer of goods from one state to another. “As and when the final transaction of these goods takes place, the credit for IGST is being utilised for payment of SGST and CGST and therefore, the inflow of new taxes is low,” it said.

Source : http://www.businesstoday.in/current/policy/gst-collections-for-cotober-total-gst-collection-good-and-service-tax/story/264867.html

HUL will lower prices by 7-10%, in line with GST rate cut: CEO Sanjiv Mehta

Mumbai: Hindustan Unilever Ltd (HUL), India’s largest consumer packaged goods company, will reduce prices by 7-10% on an average across categories following the reduction in the goods and services tax (GST) from 28% to 18% for categories like detergents, cosmetics, deodorants and packaged foods, chief executive Sanjiv Mehta said in an email interview.

The impact will be seen across almost 600 of its stock keeping units (SKUs), with some items seeing an almost 20% reduction. Prominent products that will see price reductions include its Fair and Lovely 15 gram pack, from Rs25 to Rs20; Sunsilk Shampoo 340 ml from Rs204 to Rs165 and Wheel 1 kg pack from Rs52 to Rs48.

Companies like Dabur India Ltd, Godrej Consumer Products Ltd and ITC Ltd have already made similar announcements. Dabur has reduced prices of its existing stocks by 9% across categories like shampoo, skin care and home care products. Likewise with GCPL. The maker of Cinthol soaps and Hit insecticides has initiated a 7-10% price reduction on all its products across hair colours, air fresheners, liquid detergents and deodorant categories.

These announcements follow a diktat from Central Board of Excise and Customs chairperson Vanaja Sarna to consumer goods companies to immediately revise the maximum retail price on all products in line with the GST rate cut announced by the GST Council on 10 November.

Edited excerpts from Mehta’s interview:

Will HUL reduce prices in categories where GST has been reduced?

The recent rate reductions have come across multiple categories for us, such as shampoos, detergent powders, cosmetics, instant coffee, skin care, deodorants, dishwash bars and packaged foods. We are committed to ensuring that all benefits to the business in terms of the reduction in GST rates will be passed on to the consumers in the form of lower prices or increased grammage.

By how much and by when will these new lowered prices come into effect?

As we pass on GST rate reductions the benefits to consumers across the categories will be in the range of 7-10%. On certain consumer packs, the benefits will be lower and in some others, it will be as high as 20%. Nearly 600 of our stock keeping units (SKUs) are being impacted by MRP reduction/increase in grammage, consequent to our decision to pass on the benefits of GST rate cut to the consumers. Under normal circumstances, changes to a network of this magnitude would run into a few months. However, to ensure that the consumers can enjoy these benefits at the earliest we have already commenced production of many of these packs. We are discarding/writing off our old packing material to ensure that the price changes can be printed on the packs at the production stage itself.

As an example, in mass laundry products, price reductions and grammage increase have already been taken across the entire portfolio in a matter of just one week and should be landing in the market very soon.

We are confident that the transition of a sizeable part of our portfolio to reduced MRPs/increased grammage will be completed in the next few weeks.

Will you also be reducing the prices on the existing inventory in the market?

As an immediate measure, to address the stocks with trade, we have advised our modern trade customers to pass on the benefits and you must have seen that many of these have started to land in the market. With reference to general trade, we have asked our distributors to communicate to the trade that the benefits that would be accruing to them during the transition should be passed on to the consumers.

Will you be advertising the new prices?

We will be communicating the benefit to consumers, attributing it to GST. You have already seen the first of our advertisements starting with Bru Gold and we will continue to communicate over the next few weeks as we land the networks to ensure that the consumers are fully aware of the benefits.

While the GST has been reduced, commodity prices are firming up. Will this restrict you from passing on the benefits of reduced GST to consumers?

You are absolutely right in stating that many commodities have started to firm up due to global factors. For example, crude that was hovering in the $40/barrel range is now close to $60/barrel. We will continue to monitor them and use all available levers such as our portfolio, savings, leverage etc., to manage the business.

However, our immediate priority is to pass on the benefits to the consumers in the form of lower prices or increased grammage.

Rural India demand remains muted. Will this help?

This will give a fillip to both the FMCG sector and the economy at large. As far as rural India is concerned besides the reduction in the consumer prices consequent to GST reduction, factors like good monsoon in large parts of India and increase in minimum support prices should also have a favourable impact on rural demand.

Source: http://www.livemint.com/Companies/QTrMLJNxkCjnI1Ox70dpZK/HUL-will-lower-prices-by-710-in-line-with-GST-rate-cut-C.html

‘Maha Check’ to be conducted in Telangana to keep a tab on GST compliance

The Commercial Taxes Department of Telangana has decided to keep a check on the transfer of goods by starting a surprise ‘Maha Check’ to see if the new Goods and Services Tax (GST) norms are being followed, reports The Hindu.

The GST norms allow smooth transfer of goods after getting rid of the checkpoints — now passing on the responsibility to the traders to comply with the new norms of providing the authenticated documents. The documents include the e-way bill, among other Goods and Services Tax Network (GSTN) compliance norms.

The Commercial Taxes Department told the paper that until now they went easy on the industry because they were allowing firms the leeway to adapt to the revised norms. Now, however, the Department has decided to keep a check.

Sources told the paper that enough time has been given for the trade to adapt to the norms and that they have ‘deployed mobile teams to check the movement of goods with proper documentation in random places.’

Along with this, the official added, “A surprise ‘Maha Check’ will be conducted soon when goods and vehicles will be checked one full night across the State. The objective is to assess if the goods being transported are supported with proper documents.”

Even though the new tax regime has the provision for mobile inspection, the Centre gave time to the industry to get used to the revised norms before inspecting for evasions.