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Fin Min starts notifying provisions of GST Acts


With two days left for rollout of goods and services tax (GST), the finance ministry has started notifying various provisions of law relating to interest calculation, input tax credit and valuation.

Provisions in the Central GST Act (CGST), Integrated GST (IGST) Act and Union Territory GST Act and rules under them are being notified.These include those relating to tax invoice, credit and debit notes, accounts and records, returns, payment of tax, refund, assessment and audit, advance ruling.

Also, appeals and revisions, transitional provisions, anti-profiteering and eway rules have been notified which shall come into effect from July 1.According to the notification, interest at 18 per cent is to be paid for delayed payment of tax, 24 per cent in the case of excess claim of input credit or undue/excess reduction in output liability.

Besides, interest at the rate of 6 per cent would accrue in case refund is with held. With regard to IGST, provision prescribing refund of 50 per cent of IGST on supplies to defencerun CSD canteen has been notified.

Also, notified is those provisions relating to supplies of goods in respect of which no refund of unutilised input tax credit shall be allowed. The Ministry has also notified the composition levy and has barred manufacturers of ice cream, pan masala and tobacco from paying tax under the scheme.

Under the composition scheme where the sales of businesses does not exceed Rs 75 lakh, manufacturers will have to pay 1 per cent of turnover as GST, traders 2.5 per cent and 0.5 per cent of turnover in the state in case of other suppliers.

Besides, the Ministry has also notified 12 amendments to the CGST Rules. Among other things, the amendments provide for cancellation of registration of a business for violation of anti-profiteering rules.The GST will be rolled out from July 1 and in the run up to the new indirect tax regime various provisions are being notified by the finance ministry.

Business Standard New Delhi, 29th June 2017

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