UPDATE IN TAXATION FOR THE WEEK 20TH JULY TO 26TH JULY 2020

A. GOODS & SERVICES ACT

a. NOTIFICATIONS

i. Notification No. 60/2020 Central Tax dated 30^th July 2020.

This Notification amends the CGST Rules, 2017 and called as the Central Goods and Services Tax (Ninth Amendment) Rules, 2020. Under this amendment, the Format of GST-INV-01 for E-Invoice in terms of Rule 48 of the CGST Rules, 2017 is issued.

It may be noted that E-Invoice is to be issued in GSTN (GST Portal) where IRN (Invoice Reference Number) will be generated by the Portal besides Serial Number issued by the Person.

The effective date to generate E-Invoice in GSTN is 1^st October 2020 in terms of Notification No. 13/2020 CT dated 21-03-2020.

ii. Notification No. 61/2020 Central Tax dated 30^th July 2020.

This Notification amends Notification No. 13/2020 Central Tax dated 21^st March 2020 wherein Class of Registered Person were notified and who were required to generate E-Invoice in GSTN with effect from 1^st October 2020.

After the amendment, the Class of Registered Person who are required to generate E-Invoice are as under:

1. whose aggregate turnover in a financial year exceeds FIVE HUNDRED crore rupees

However, it may be noted that the following Class of Registered Person are out of purview of E-Invoice even if their aggregate turnover exceeds Five Hundred Crores Rupees in a financial year. In other words, such persons are NOT REQUIRED TO GENERATE E-Invoice:

1. A Registered Person in Special Economic Zone;
2. Insurance Company, banking Company, financial institution including NBFC (Rule 54(2) of the CGST Rules, 2017 refers);
3. Goods Transport Agency (irrespective of fact that whether GST is paid by Consignor, Consignee or GTA) (Rule 54(3) of the CGST Rules, 2017 refers);
4. Taxable Service Supplier supplying Passenger Transportation Service (Rule 54(4) of the CGST Rules, 2017 refers);
5. A registered person supplying services by way of admission to exhibition of cinematograph films in multiplex screens (Rule 54(4A) of the CGST Rules, 2017 refers);

B. CUSTOMS

a. NOTIFICATIONS

i. Notification No. 02/2020 Cus (SAFEGAURD) dated 30^TH July 2020.

This Notification amends Principal Notification No. 1/2018 (SG) dated 30^th July 2018 reducing Safe Guard Duty on imports on the goods falling under Customs Tariff Heading 8541 40 11 (Solar Cells, not assembled) and 8541 4012 (Solar Cells, assembled in modules or made up into panels) to 14.9% Adveloram less ADD, if any for the period 30^th July 2020 to 29^th July 2021 (Both Dates included).

The Safeguard Duty is not applicable for imports made from Notified Developing Countries (Refer Notification No 16/2016 Cus (NT)) except for imports from China PR, Thailand and Vietnam.

ii. Notification No. 20/2020 Cus (ADD) dated 29^th July 2020.

The Anti-Dumping Duty is imposed on ‘Aniline’ or ‘Aniline Oil’ falling under Customs Tariff Head 2921 41 10 as under:

Sr No	Country of Origin	Country of Export	Producer	ADD in USD/MT
1	China PR	Any Country including China PR	Wanhua Chemical Goup Co., Ltd	65.91
2	China PR	Any Country including China PR	Any Producer other than at Sr No 1	150.80
3	Any other Country other than China PR	China PR	Any	150.80

This Notification is effective for a period of SIX MONTHS from date of issue i.e. from 29^th July 2020. ADD imposed is to be paid in INR.

iii. Notification No. 21/2020 Cus (ADD) dated 29^th July 2020.

Anti-Dumping Duty is imposed on Import of Digital Offset Printing Plates classifiable under CTH 8442 50, 3701 30 00, 3704 00 90, 3705 00 00, 7606 11 90, 7606 91 90, 7606 92 90 varying from Nil to 0.77 USD per Sqm when imported from certain notified Countries, Manufacturers and Exporters.

This ADD Rates are effective for 5 Years from date of the Notification (30^th July 2020) and ADD is payable in INR.

The Clients are requested to revert individually, if they desire to know specific details of applicable ADD in case Digital Offset Printing Plates are being imported.

b. CIRCULAR

i. Circular No. 34/2020-Customs (F. No.: 450/26/2019-Cus IV (Pt).

With effect from 03-08-2020, as the 2^nd Phase of Faceless Assessment, the Board has included Delhi and Mumbai Zone in the Faceless Assessment Programme. At present for Imports of Goods falling under CTH 29 at Mumbai I/II & III Zone (Mumbai Port, JNPT and Air Cargo) are covered under this programme.

c. INSTRUCTIONS

i. Instruction No. 15/2020-Cus (F. No.: 401/25/2020-Cus-III) dated 24^th July 2020.

As per the instructions DDG (TC), Ministry of Communication, Mandatory Testing and Certification for the following imports is made effective with effect from 1^st October 2020:

1. Transmission Terminal Equipment (SDH Equipment, Multiplexing Equipment).
2. PON family of Broadband Equipment (PON ONT, PON ONU and PON OLT)
3. Feedback Device

ii. Instruction No. 16/2020 Cus (F. No. 401/21/2020-CusIII) dated 24^th July 2020.

As per directions of FSSAI, Health Supplement containing PABA (Para Amino Benzoic Acid) and also use of PABA is prohibited.

C. IMPORT – EXPORT RELATED – DGFT

a. NOTIFICATION

i. Notification No. 21/2015-2020 dated 27^th July 2020.

This Notification amends Notification No. 14/2015-2020 dated 22-06-2020 and the goods covered under Entry No 207A of the Schedule are amended as under:

Entry No in Schedule	ITC (HS)	Description	Export Policy	Condition
207A	901850 901890 9020 392690 621790 630790	Following Personal Protection Equipments (PPES) either as part of kits or as individual item: .
		1. Medical Coveralls of all Classes/Categories (Except Surgical drapes, isolation aprons, surgical wraps & X ray gowns).	Prohibited	Medical Coveralls such as Surgical drapes, isolation aprons, surgical wraps & X ray gowns are FREELY exportable
		2. Medical Coveralls for COVID-19	RESTRICTED	Monthly Quota of 50 Lakhs units of Medical Coveralls for COVID-19
		3. Medical Goggles.	RESTRICTED	Monthly Export Quota of 20 Lakhs units of Medical Goggles
		4. All masks other than non-medical/non-surgical masks (cotton, silk, wool, polyester, Nylon, Rayon, Viscose – Knitted, Woven or Blended).	PROHIBITED	non-medical/non-surgical masks (cotton, silk, wool, polyester, Nylon, Rayon, Viscose – Knitted, Woven or Blended are FREELY Exportable
		5. 2/3 Ply Masks	RESTRICTED	Monthly Export Quota of 4 Crores Units of 2/3 Ply Mask
		6. Medical Nitrile/ NBR Gloves.	PROHIBITED
		7. Face Shields	FREE	Freely Exportable

ii. Notification No. 22/2015-2020 dated 30^th July 2020.

Import of Television (Colour) Set of various screen sizes including LCD falling under CTH 8528 72 11 to 8528 72 19 are now under “PROHIBITED” Category from FREE.

Even Actual User Condition is not applicable.  However procedure to grant license will be notified later.

b. TRADE NOTICES

i. Trade Notice No. 20/2020-21 dated 30^th July 2020.

Notification No. 09/2015-2020 dated 11-06-2020 restricted export of Diagnostic Kits/Laboratory Reagents/Diagnostic Apparatus for which this Trade Notices fixes quota is as under:

Sr No	Diagnostic Kit	Units or Nos. /Per month (in Lakhs)
1	VTM Kits	238
2	RNA Extraction Kit	149
3	TR-PCR Kits – Single Tube	34
4	TR-PCR Kits – Double Tube	40
5	TR-PCR Kits – Triple Tube	40

This Trade Notice lays down guidelines for making an application for quota and to be made Online between 5^th to 8^th August 2020. Only manufacturers of are allowed to apply. The validity of license is for 3 months.

ii. Trade Notice No. 21/2020-21 dated 30^th July 2020.

Notification No. 21/2015-2020 dated 27-07-2020 restricted export of Medical Goggles and allowed quota of 20 Lakhs Units/Per Month. This Trade Notice lays down guidelines for making an application for quota for Medical Goggles. Such Applications to be made Online between 5^th to 8^th August 2020 and manufacturers of Medical Goggles will be preferred. The validity of license is for 3 months.

iii.     Trade Notice No. 22/2020-21 dated 30^th July 2020.

Notification No. 21/2015-2020 dated 27-07-2020 restricted export of 2/3 Ply Surgical Masks and fixed quota of 4 Crores Units/Per Month. This Trade Notice lays down guidelines for making an application for quota for 2/3 Ply Surgical Masks. Such Applications to be made Online between 5^th to 8^th August 2020 and manufacturers of Medical Goggles will be preferred. The validity of license is for 3 months.