27-07-2017 - Integrated Tax
The Central Government has notified that provisions of sections 4 to 13, 16 to 19, 21, 23 to 25 of The Integrated Goods and Service Tax Act, 2017 shall come into force from 1st July 2017.
Provisions of CGST will also apply for IGST- Notification No. 4/2017
The Integrated Goods and Services Tax Rules, 2017 have been notified and are deemed to have come into force retrospectively from 22nd June 2017.
The Central Goods and Services Tax Rules, 2017, for carrying out the provisions specified in section 20 of the Integrated Goods and Services Tax Act, 2017 shall, so far as may be, apply in relation to integrated tax as they apply in relation to central tax. Section 20 mentions the CGST provisions that will apply mutatis mutandis for IGST.
Integrated Tax (Rates) Notifications
Cases where the e-commerce operator will pay IGST- Notification No. 14/2017
E-commerce operator will pay the IGST in the following services
•Transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle (Eg. Ola outstation from Bangalore to Chennai)
•Providing accommodation in hotels, inns and other commercial places meant for residential or lodging purposes. For example a small hotel registered on Oyo rooms. Oyo rooms will pay IGST However, if the person (hotel) supplying such service through e-commerce is liable for registration under GST then that person will pay. Eg, Ibis Hotel is a large multi-chain hotel also registered on Oyo rooms. Then Ibis Hotel will pay. It will come into force with effect from the 1st July, 2017. Goods on which reverse charge applies-Notification No.4/2017 A list of goods on which reverse charge applies is issued by CBEC. When the supply is made by the specified person, then IGST will be payable on reverse charge basis by the recipient of the intra-state supply of such goods. All the provisions of will apply to such recipient. No ITC for Construction- Notification No. 12/2017 No refund of unutilized ITC will be allowed input tax credit shall be allowed for IGST in construction of a complex, building etc. (works contract). Except in cases where the entire consideration has been received after issuance of completion certificate or after its first occupation, whichever is earlier. This is in keeping with the provision of not allowing ITC.
This will come into force with effect from the 1st day of July, 2017. Reverse Charge- Notification No. 10/2017 List of services on which reverse charge is applicable is issued. It is the same as issued under CGST Act. Army Canteens- Notification No. 6 & 7/2017 In the public interest exempts, the following are exempted from IGST (& also CGST)-
•The supply of goods by the Canteen Stores Department (CSD) to the Unit Run Canteens or
•The supply of goods by the CSD/Unit Run Canteens to the authorized customers The CSD can claim a refund of 50% on IGST of all input goods received by it for subsequent supply of such goods to the Unit Run Canteens or to the authorized customers of the CSD. This notification shall come into force with effect from the 1st July, 2017. Inverted Rate Structure- Tax On Inputs>Tax On Outputs- Notification No.5/2017 Refund of unutilised ITC will NOT be allowed, when the ITC is accumulated due to rate of tax on inputs being higher than the rate of tax on the output goods (except nil rated or fully exempted goods). High tax on the imported raw materials compels manufacturers to raise price. On the other hand, foreign finished goods have lower tax rate.. In conclusion, manufactured goods by the domestic industry becomes uncompetitive against imported finished goods. List of goods on which this notification applies. For UIN & Diplomats Notification No. 13/2017 This notification specifies the conditions applicable –
•UN or specified international organisations and
•Foreign diplomats in India Panchayat services- Notification No. 11/2017 Constitutional services of the Panchayat are not covered under GST.