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Circulars
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Clarification on doubts related to supply of Information Technology enabled Services (ITeS services).
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Intermediary classification determines whether ITeS supplies qualify as export of services and affect export benefit eligibility.
Clarifies that a provider of ITeS services who supplies services on its own account is not an intermediary, while a provider whose role is limited to arranging or facilitating another's supply will be an intermediary; mixed cases require fact specific determination of the principal supply. Suppliers not being intermediaries may qualify for export of services benefits if they meet the conditions regarding supplier and recipient locations, place of supply, receipt of payment in convertible foreign exchange, and absence of mere establishment relationships.
Launch of Indian Customs EDI System- (ICES 1.5) for Imports and Exports, at INKGJ1 (Karimganj Steamerghat & Ferry Station LCS), INMREB (Moreh LCS), INMHGB (Muhurighat LCS), INAGTB (Agartala LCS) and INSMPB (Srimantapur LCS)
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Electronic Data Interchange mandates electronic customs filing at notified land customs stations, altering import and export clearance procedures.
ICES 1.5 implementation requires that all statutory import and export declarations and documents at the named Land Customs Stations be filed and processed electronically through the Electronic Data Interchange (EDI) system, with the Facility No. 07/2018 procedures applying mutatis mutandis and adherence to the prescribed Standard Operating Procedure for electronic clearance.
: Corrigendum to Circular No. 97/16/2019-GST dated 5th April, 2019 issued vide F. No. CBEC/20/16/4/2018-GST (Pt. I), as amended vide Corrigendum dated 01.07.2019
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Composition scheme deadline extended: eligible suppliers may file FORM CMP-02 and furnish FORM ITC-03 by 30 September.
A registered person opting to pay central tax under the composition levy must file FORM GST CMP-02 selecting "Any other supplier eligible for composition levy" and furnish FORM GST ITC-03 as required; the deadline for filing these intimation and statement requirements is extended to 30th September, 2019.
08/2019 - 29-07-2019 Companies Law
Relaxation of additional fees and extension of last date of filing of Form BEN-2 under the Companies Act, 2013
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Extension of BEN-2 filing deadline permits filing without additional fee until extended date; subsequent fees apply.
The Ministry of Corporate Affairs has extended the time limit for filing e Form No.BEN 2 without payment of additional fee up to 30.09.2019; thereafter fee and additional fee shall be payable, the circular advising Regional Directors, Registrars of Companies and stakeholders that the relaxation follows representations and approval of the competent authority.
Minutes of the 36th GST Council Meeting held on 27 July, 2019
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Electric vehicles: GST reduced to 5%, chargers 5%, hiring of electric buses exempt, effective 1 Aug 2019.
The Council reduced GST on all electric vehicles from 12% to 5% and on chargers/charging stations from 18% to 5%, exempted hiring of electric buses by local authorities, and made these changes effective 1 August 2019. It granted deemed ratification to Central Government Notifications, Circulars and Orders issued between 12 June and 19 July 2019, noted GIC decisions from 11 May to 19 July 2019, and approved extensions for FORM GST CMP-02 to 30 September 2019 and FORM GST CMP-08 to 31 August 2019.
Streamlining the Process of Public Issue of Equity Shares and convertibles-Implementation of Phase II of Unified Payments Interface with Application Supported by Block Amount
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Unified Payments Interface mandatory for retail IPO applications; non-listed bank or incorrect UPI handle may cause rejection.
Phase II mandates UPI with ASBA for retail investor applications through intermediaries, discontinuing the prior intermediary-to-SCSB blocking channel; only applications through SCSBs and mobile apps listed on SEBI's website using the correct UPI handle are permissible, and applications using non-listed banks, apps or incorrect handles may be rejected. Alternatives remain for investors whose banks are not live on UPI, and participants must follow SEBI's FAQs and compliance steps.
Guidelines for Liquidity Enhancement Scheme (LES) in Commodity Derivatives Contracts
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Liquidity enhancement exemptions for newly formed exchanges permit capped incentives from audited net worth, subject to reserve creation.
Exemption allows newly formed or recommencing exchanges to disregard specified prior limits on LES during their first five years, provided yearly LES incentives do not exceed a prescribed share of audited net-worth, a dedicated LES reserve is maintained (excluded from net-worth calculation), and minimum net-worth requirements under securities regulations continue to be satisfied; exchanges must amend bye-laws, notify brokers, publish the circular, and report implementation to the regulator.
Staggered Delivery Period in Commodity futures contracts
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Staggered delivery period standardised to ensure fair allocation, mandatory delivery procedures and prompt pay-in/pay-out timelines.
SEBI mandates a minimum five working day staggered delivery period for all compulsory delivery commodity futures, permits exchanges to set longer periods based on factors like historical open interest and near expiry volume, and requires exchanges to publish criteria for longer durations. During the period sellers/buyers may submit intentions; exchanges shall allocate daily intentions to buyers with open long positions by random allocation (with limited preference for declared takers). Pay-in/pay-out for allocated deliveries must occur within two working days; post expiry open positions result in compulsory delivery at the Final Settlement Price with pay-in/pay-out by the second working day. Pre expiry margin must commence by the start of the staggered period and changes apply to contracts expiring after three months.
Implementation of PGA eSANCHIT- Paperless Processing under SWIFT- Uploading of Licenses/ Permits/Certificates/ Other Authorizations (LPCOs) by PGAs
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eSANCHIT paperless LPCO uploads by PGAs: beneficiaries blocked from self upload from 01/08/2019; ensure correct ICEGATE email registration.
PGAs must upload digitally signed Licenses/Permits/Certificates/Other Authorizations (LPCOs) to eSANCHIT via SWIFT at ICES locations; 16 additional PGAs have been added, raising the total to 43. Beneficiaries are barred from uploading previously issued LPCOs from 01/08/2019; PGAs must upload LPCOs issued in the 15 days before that date and may upload older LPCOs. PGAs will communicate LPCO notifications and IRNs to ICEGATE registered email addresses, and beneficiaries should ensure correct ICEGATE email registration.
Order of the High Court, Hyderabad in W.P: No 34771/2014 in respect of item at EXIM Code1005 Maize (Corn)
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Import license requirement for maize imports: DGFT clearance now mandatory pending court orders, affecting unauthorized consignments.
Importation of maize under EXIM code 1005 90 00 is subject to an import license issued by DGFT, in compliance with the High Court's interim direction of 09.07.2018 as extended on 26.07.2018, and customs and regional authorities are to permit clearance only for consignments backed by such authorization.
Reimbursement of DGST on Admission to Exhibition of Film “Super 30” in Delhi Multiplexes and Cinema Halls
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DGST reimbursement for film exhibition requires unchanged entry fees, tax deposit, ticket stamping, and timely verified applications.
Reimbursement of an amount equivalent to Delhi Goods and Services Tax payable and deposited on admission services for exhibition of "Super 30" is available for six months, subject to unchanged entry fees and seating capacity. Multiplex and cinema-hall owners must separately deposit the applicable State GST, apply in the prescribed form with challans, and stamp each ticket and counterfoil to indicate that SGST has not been charged. Tax already collected from viewers is not reimbursable, and reimbursement is subject to budgetary fund availability.
Corrigendum to Circular No. 57/2019-GST (CT/GST-15/Pt-I/2017/26 dated 1st July, 2019).
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Penal interest GST treatment clarified: penal interest treated as covered under notification, not taxable in the example.
Corrigendum amends paragraph 5 of Circular No. 57/2019 GST to state that the penal interest charged on a transaction between Y and M/s ABC Ltd. would not be subject to GST because it would be covered under Notification No. 12/2017 State Tax (Rate); the illustrative value of supply of a mobile by X to Y remains Rs. 40,000/-.
Instruction reg. registration/cancellation ARN issue
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GST ARN dashboard issues require portal search, reassignment, or service desk tickets to ensure proper officer disposal.
ARNs relating to GST registration and cancellation cases that are not visible on the dashboard are to be identified through the Search ARN details facility on the Boweb Portal. If the ARN is correctly pending with the concerned officer but not displayed for disposal, a ticket is to be raised on the Service Desk Portal so the Officer Help Desk may resolve the technical issue. If the ARN is pending with the wrong officer, it is to be transferred through the Reassign Work Items facility or, if necessary, by generating a Service Desk ticket for transfer.
Clarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion - reg.
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Export-promotion consignments are not supplies until sale or deemed supply, requiring challans, records, invoicing and refund compliance.
Goods sent or taken out of India for exhibition or export-promotion consignments are not supplies, and therefore not zero-rated supplies, at the time of removal where no consideration is received. They must move under a delivery challan and be recorded by the registered person. Goods must be sold abroad or returned within six months; supply arises on the date of sale for goods sold, or is deemed to arise on expiry of that period for goods neither sold nor returned. Tax invoices and eligible input tax credit refunds follow only after supply arises.
Corrigendum to Circular No. 11 / 2018-19 - GST dated 05/06/2018 issued vide F. No. CCT/26-4/2017-2018/824.
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GST refund filing period: Portal filing extends for claims, subject to integrated tax or cess reporting ceilings.
GST refund application filing in FORM GST RFD-01A through the common portal is available to relevant registered persons for tax periods commencing from 1 July 2017 to 30 June 2019. Each refund claim remains capped at the aggregate integrated tax or cess reported in columns 3.1(a), 3.1(b) and 3.1(c) of FORM GSTR-3B filed for the corresponding tax period.
Corrigendum to Circular No. 10/2019-20-GST dated 15th July 2019, issued vide F. No. CCT/26-4/2017-2018/C/985
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Penal interest GST exclusion is clarified when charges fall within the specified notification entry, while supply valuation remains unchanged.
Additional or penal interest arising from a transaction between Y and M/s ABC Ltd. is not subject to GST where it falls within the specified entry in the relevant rate notification. The basis for non-taxability is its coverage under that entry, rather than non-coverage. This treatment is distinct from valuation of the underlying mobile supply, whose stated value remains unchanged for GST levy.
Clarification on doubts related to supply of Information Technology enabled Services (ITeS services) - reg.
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ITeS intermediary classification determines whether own-account services to overseas clients can satisfy GST export conditions.
GST treatment of ITeS supplied to overseas clients depends on whether services are supplied on the provider's own account or merely arrange or facilitate supplies between other persons. Own-account back-end ITeS are not intermediary services, even when supplied to an overseas client's customers. Facilitative support connected with the client's supplies is intermediary activity. Mixed arrangements require a fact-specific assessment of the principal supply. A non-intermediary supplier may obtain export of services treatment only if the supplier, recipient, place of supply, payment and distinct-establishment conditions are satisfied.
Issues related to GST on monthly subscription/contribution charged by a Residential Welfare Association from its members.
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Exemption for RWA maintenance charges: GST applies if member charges exceed the ceiling and turnover triggers registration.
Supply of services or goods by an RWA to its own members by way of reimbursement or share of contribution up to a specified per member monthly ceiling is exempt from GST; if charges per member exceed that ceiling the exemption fails and the entire amount is taxable. Registration and liability to pay GST arise only when such per member charges exceed the ceiling and the RWA's annual aggregate turnover meets or exceeds the statutory registration threshold. RWAs may claim input tax credit for inputs used in making supplies to members.
Clarification in respect of goods sent/taken out of India for exhibition or on consignment basis for export promotion.
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Goods sent abroad for exhibition/consignment are not a supply until sold or after six months, invoicing then required.
Goods sent or taken out of India for exhibition or on consignment with no consideration at that time do not constitute a supply and are not a zero-rated supply; delivery challans and prescribed records must accompany such goods, tax invoices are required only when supply crystallises (on sale abroad or on expiry of six months if not returned), and execution of bond or LUT is not required at the time of sending. Refunds of input tax credit may be claimed only after tax invoices are issued when supply qualifies as zero rated under the refund provisions.
Clarification on doubts related to supply of Information Technology enabled Services (ITeS services).
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Intermediary classification determines when ITeS suppliers qualify as export of services under GST and when export benefits apply.
Intermediary status depends on whether the supplier arranges/facilitates supplies or supplies services on its own account; ITeS suppliers providing services on their own account are not intermediaries, whereas those merely arranging facilitation (logistics, order placement, clearances, post-sales support) are intermediaries. Mixed cases require factual determination focusing on the principal supply. Non-intermediary ITeS suppliers may qualify as export of services only if statutory conditions regarding supplier and recipient locations, place of supply, convertible foreign exchange payment, and distinct person status are satisfied.

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Kerala Finance Bill,2019 Amesty scheme for settlement of arrears – instructions issued

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Amnesty scheme for settlement of arrears: waiver of interest and penalty on principal payment, conditional on withdrawing appeals.
The Amnesty Scheme authorises one-time settlement of arrears under multiple state and central sales tax statutes by payment of principal with waiver of ... Summary

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Acts Income Tax