UPDATE IN TAXATION FOR THE WEREK 22ND JUNE TO 27TH JUNE 2020

1. GOODS & SERVICES ACT

In this said week, the CBIC has issued various Notifications (Non Tariff) giving effects of amendments, substitution, changes in the various provisions of the CGST Act, 2017. The Notification wise details are as under:

a. Notification No. 49/2020 CT dated 24-06-2020.

Vide said Notification, the Government  has made effective Certain provisions of the Finance Act, 2020 (declared in Budget)  in the CGST  Act, 2017 and brought into effect from 30th June 2020.

Section of the Finance Act, 2020	Explanation/Remarks (Having effect in the CGST Act, 2017)
118	Substitution in Section 2(114) of the CGST, 2017 (Defining Union Territory): (c) Dadra and Nagar Haveli and Daman and Diu (d) Ladakh (Recently, the GST Council had merged Dadra, Nagar Haveli with Daman & Diu UTs for GST Purpose)
125	Amended provisions of Section 109(6) of the CGST Act, 2017 (Related to the Appellate Tribunal)
129	Amends Section 168 of the CGST Act, 2017 (powers of the Board to issue Orders, Instructions or directions for maintaining uniformity in the Country), whereby (a)     Section 66(5) of the Act (to pay CA or Cost Acc by Commissioner during Scrutiny or Audit) (Now the State or UT Officials may decided such remunerations) and (b)     Section 143 (1) of the Act (provision relating to return of goods sent for job work) (Again State or UT will decide time line)
130	Amended Section 172 of the Act (Powers of the Board to issue General or Special Order making changes in the Act) from Three Years to Five Years from commencement of the Act.

b. Notification No. 50/2020 CT dated 24-06-2020

This Notification is Seventh Amendment to the CGST Rules, 2017 whereby GST Rates (CGST) [equivalent Notification by respective State/UT for SGST/UTGST to be referred) have been made effective from 01st April 2020 as under:

Class or Category of Person	GST Rate within the State or UT
Manufacturers, other than manufacturers of such goods as may be notified by the Government (Section 10(1) and 10(2)	Half Percent of Turnover
Hotels, Restaurant and WCT (Section 2(119) of the Act)	TWO & HALF Percent of Turnover
Any other supplier eligible for composition levy under sub-sections (1) and (2) of section 10 (including certain Services)	Half Percent of Turnover
Section 10(2A) – Persons providing services or mixed supplies	THREE Percent of Turnover

The CBIC has issued Corrigendum of the above Notification on 25-06-2020 correcting words from “turnover of taxable” to “turnover of”.

c. Notification Nos. 51/2020-CT; 52/2020-CT, 53/2020-CT and 54/2020-CT all dated 24-06-2020.

The above Notifications has caused certain amendments in the procedural provisions of the CGST Act, 2017 extending Due Dates for  filing  GSTR-1 (53/2020 CT) and GSTR-3B (51/2020 CT; 52/2020 CT & 54/2020 CT)

Returns along with waiver of Late Fees till certain period as well lowering or waiving Interest Applicability for delayed payments for various “Class or Category of Registered Person” as under:

Notification No 51/2020 CT dated 24-06-2020				Notification No 52/2020 CT dated 24-06-2020
Nil or Reduced Interest on Tax Payable
Category / Class of Person	Tax Period	Due Date	Rate of Interest	Late Fee Waiver
Turnover More Than Rs 5 Crores in preceding F Y	Feb-20	20-Mar-20	NIL – If filed within 15 after Due Date 9% after 15 days of due date but on or before 24-06-2020	IF filed on or before 24-06- 2020
	Mar-20	20-Apr-20
	Apr-20	20-Jun-20
Turnover UPTO Rs 5 Crores in preceding F Y and located in the State/UT of Chhattisgarh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Goa, Kerala, Tamil Nadu, Telangana or Andhra Pradesh or the UTs of Daman and Diu and Dadra  and Nagar Haveli, Puducherry, Andaman and Nicobar Islands and Lakshadweep		NIL Rate Till date	9% after the date of NIL Interest but before	If Filed On or Before
	Feb; 20	30-Jun-20	30-Sep-20	30-Jun-20
	Mar; 20	3-Jul-20	30-Sep-20	3-Jul-20
	April; 20	6-Jul-20	30-Sep-20	6-Jul-20
	May; 20	12-Sep-20	30-Sep-20	12-Sep-20
	June; 20	23-Sep-20	30-Sep-20	23-Sep-20
	July; 20	27-Sep-20	30-Sep-20	27-Sep-20
	August, 20	1-Oct-20	(Notification No 54/2020 CT)	1-Oct-20
Turnover UPTO Rs 5 crores in preceding FY and located in  States/UT of Himachal Pradesh, Punjab, Uttarakhand, Haryana, Rajasthan, Uttar Pradesh, Bihar, Sikkim, Arunachal Pradesh, Nagaland, Manipur, Mizoram, Tripura, Meghalaya, Assam, West Bengal, Jharkhand or Odisha or the Union territories of Jammu and		NIL Rate Till date	9% after the date of NIL Interest but before	If Filed On or Before
	Feb; 20	30-Jun-20	30-Sep-20	30-Jun-20
	Mar; 20	5-Jul-20	30-Sep-20	5-Jul-20
	April; 20	9-Jul-20	30-Sep-20	9-Jul-20
	May; 20	15-Sep-20	30-Sep-20	15-Sep-20
	June; 20	25-Sep-20	30-Sep-20	25-Sep-20
	July; 20	29-Sep-20	30-Sep-20	29-Sep-20
Kashmir, Ladakh, Chandigarh and Delhi.	August, 20	3-Oct-20	(Notification No: 54/2020-CT)

53/2020 CT dated 24-Jun-20	GSTR-1 Late Fees waived Provided Monthly or Quarterly GSTR-1 if filed as under:
	Period	Date
	March; 2020 (Monthly)	10-Jul-20
	April, 2020 (Monthly)	24-Jul-20
	May, 2020 (Monthly)	28-Jul-20
	June, 2020 (Monthly)	5-Aug-20
	Jan to Mar 2020 (Qtly)	17-Jul-20
	April to June 2020 (Qtly)	3-Aug-20

d. Notification No 55/2020 CT dated 27th June 2020

This Notification amends Principal Notification 35/2020 CT dated 3rd April 2020 where the Last Date of 30th June 2020 has been extended  to  31st  August 2020.

The Principal Notification 35/2020 CT had extended period of Appeal, Return, Refund, Applications, Reports by Registered Person as well  Notices, Orders, etc   by the Department of which expiry fell between 20th March 2020 to 29th June 2020 was extended to 30th June 2020. This date of 30th June 2020 is now extended and to be read as Expiry falling between 20th March 2020 to 30th August 2020” and Date Extended for complying as 31st August 2020.

e. Notification No. 56/2020 CT dated 27th June 2020.

This Notification amends Principal Notification No 46/2020 CT dated 9th June 2020 issued for Replying to Show Cause Notices issued for Rejection of Refund  and expiry date for filing refund was between “20th March 2020 to 29th June 2020” to be filed by 30th June 2020 IS NOW FURTHER EXTENDED and To BE READ as Expiry of Time Limit between 20th March 2020 to 30th August 2020 to be filed by 31st August 2020.

f. ORDER NO. 1/2020 CENTRAL TAX dated 25th June 2020. 

This Order is called as “the Central Goods and Services Tax (Removal of Difficulties) Order, 2020.

The persons on whom notice of Cancellation of Registration under Section 29(2) Clause (b) or (c) of the CGST Act, 2017 was served and such Person was supposed to file Application for Revocation within 30 days of such Notice and/or in the cases where Cancellation of Order was  passed  by  12th  June  2020; in such cases last date for reply would be later of following dates:

• Date of passing of Order or
• 31st August

 

2. CUSTOMS 

a. Tariff Notification 28/2020-Cus dated 23rd June 2020

This Notification is for certain products for which “Tariff Rate Quota”  is allotted by the DGFT to certain Importers and were applicable  for  “In  Quota Tariff Rate”, quota of such products and Tariff Rate is (specific condition for Importers in Telangana and Andhra Pradesh in terms of Interim Order by the Honorable High Court) notified as under:

Sr No	CTH	Product Description	TRQ in Qty	In-Quota Tariff
1	0402 10 Or 0402 21 00	Milk and cream in powder, granules or other solid forms, (a)     of a fat content by weight not exceeding 1.5%; (b)     of a fat content, by weight, exceeding 1.5% -not containing added sugar or other sweetening matter	10,000 MT	15%
2	1005 90	Maize(corn), other than seed quality	500000 MT	15%
3	1512 11	Crude sunflower seed or safflower oiland fractions thereof	150000 MT	50%
4	1514 19 Or 151499	Refined rape, colza or mustard oiland fractions thereof	150000 MT	45%

c. Anti Dumping Duty Notification No. 16/2020 Cus (ADD) dated 23rd June 2020

The Customs as per the directions of the Director General of Anti Dumping Duty, has issued the Notification No 16/2020 Cus. (ADD) with effect from 23rd June 2020 imposing Anti Dumping Duty at varying rate of USD 14.30/MT to USD 173.10MT depending upon Manufacturer, Country of Origin and Country of Export (especially includes manufacturers and Exporters of PR China, Vietnam, Republic of Korea) on the following goods:

CTH
7210, 7212, 7225 and 7226	Flat Rolled Product of Steel plated or coated with alloy of Aluminum and Zinc (this alloy of Aluminum and Zinc may contain one or more additional elements which in individual or combination shall not exceed 3% by weight)

(Please note: If the Client is importing the above  product,  they  may  please contact TEAM MNA to obtain exact Anti Dumping Duty).

d. Circular No. 29/2020 Customs dated 22-06-2020 (F. No.: 550/02/2018-LC

This circular lays down procedure and condition for Transhipment of  Export Cargo from BANGLA-DESH to Third Countries via Land Customs (Petrapole, Gede/Ranaghat) to Kolkata Port, Air Cargo Complex Kolkata or JNPT By ROAD or to JNPT by Rail. 

e. Circular No. 30/2020 Customs dated 22nd June 2020 (F. No. 450/26/2019-Cus-IV)

The Customs has laid down procedure for issuance  of  PDF  Based  Shipping Bill with Digital Sign and encrypted QR Code and e-Gatepass for Customs Brokers /Exporter.

The Customs had already done away with Exchange Control Copy of Shipping Bill and now Let Export Copy (Final Copy) is done away as the same will be issued electronically.

 

3. IMPORT-EXPORT RELATED – DGFT

a. Notification No. 14/2015-2020 dated 22-06-2020.

This Notification amends earlier Notification 44 dated 31-01-2020 and 6/16- 05-2020 and inserted following entry under PROHIBITED Category from  Free.

Sr No in Schedule	ITC HS Code	Description
207A	901850 901890 9020 392690 621790 630790	Following Personal Protection Equipments (PPE) exported either as a part of kits or as an individual items- 1.  Medical Coveralls of all classes/categories 2. Medical Goggles 3. All Masks other than non-medical/non-surgical masks (Cotton, Silk, Wool, Polyester, Nylon, Rayon, Viscose – Knitted, Woven or Blended) 4. Nitrile/NBR Gloves 5. Face Shield

b. Notification No. 15/2015-2020 dated 25-06-2020

This Notification amends the Foreign Trade Policy 2015-2020 to the extent that condition of re-import of “cut and polished diamond (0.25 carat or above)” by laboratories and/or offices/representative of laboratories (Para 4.74 of HBP) without payment of duty (zero payment) which were exported for certain purposes within 3 months of date export is not extended to SIX Months if expiry period is between 01-02-2020 to 31-07-2020.

c. Trade Notice No. 15/2020-2021 dated 21-06-2020

Deals with issue of Certificate of Origin for Indian Exports to Vietnam, Thailand under ASEAN-India FTA, one copy electronically (imaging signature of Proper Officer) and 4 copies manually for ease of clearance of goods with due benefits at port of discharge.

d. Trade Notice No. 16/2020-2021 dated 05-06-2020

DGFT has launched New Online Digital Platform through which various services of the FTP can be availed.

The following are the important points for Importers/Exporter to note to avail Online Digital Facility

1. Access to the services would be through a username and password based system. The first time logins/user ID may be created through a registration process on the new
2. For user ID creation, registered mobile number/email ids of theIEC holders will be a mandatorily required. The same will be authenticated by the process of OTP/email based authentication
3. Users would have to link their login IDs to their specific IECs. The process of linking would be available post login through Digital Signature/Aadhaar based e-Sign.
4. Digital Signature (DSC)/Aadhaar based e-Sign will be required for applying and modifying IEC or adding or updating the IEC-linked Users may take necessary actions for procuring/updating their information  etc. on  the DSC/Aadhaar.