Page 16 - Craftcil March 2017
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                       3.  The GST (Compensation to States) Bill  4.  The Union Territory Bill
                       With the Parliament nod, the onus now shifts to states that will have to pass the state GST law in their
                       respective state assemblies. The Centre has already put out detailed rules for discussions for stakeholder
                       consultations. The GST Council, the constitutional body created for this tax, will next month take up the
                       last remaining issue of fitting individual goods and services to various tax rates. Separately, the Lok
                       Sabha passed a bill to make excise and customs act compliant with GST. This bill seeks to do away with
                       current cesses, which will be subsumed in the GST. As with regards implementation of GST with effect
                       from 01-07-2017, it is stated that things have happened the way and in time, they should have and 1st
                       July 2017 is in the realm of reality. However, some with intimate knowledge of GST still feel that its
                       implementation may be postponed to 1st September, 2017 so that the last lap is not very strenuous and
                       exhausting in making things exhaustive.

            Question : No exchange control copies of export shipping bills are being generated at JNPT. Although this is a
                       bold step aimed at reducing complexities, a major problem has arisen with the documentation
                       formalities at Banks as they are directed by RBI not to handle any export documents without original
                       Ex Control Copy of Shipping Bills. What is the solution?
            Answer   : Since contents of Shipping bill have been integrated in EDPMS, banks are not asking for the same and
                       there is no contradictory circular by RBI to that effect. If there is any such case with a specific bank, kindly
                       approach banker with the CBEC Notification.
            Question : What are the conditions that need to be fulfilled for obtaining Input Tax Credit (ITC)?
            Answer   : Following four conditions are necessary for obtaining ITC:
                       a) The registered taxable person should be in possession of taxpaying documents issued by a supplier
                       b) The taxable person must have received the goods and / or services.
                       c) The tax charged on such supply has been actually paid to the government either in cash or through
                          utilization of input tax credit; and
                       d) The taxable person should have furnished the return under section 27.
            Question: Whether we will be entitled to GST credit on inputs which are used in manufacture of a product
                       disposed of as a free sample?
            Answer   : Input tax credit shall not be available in respect of goods lost, stolen, destroyed, written off or disposed
                       of by way of gift or free samples. Thus, when the assessee actually writes off the goods in their books of
                       account, then only, the GST credit on such inputs is required to be reversed in the GST Regime.
            Question : Exporters will pay GST on certain service on reverse charge basis. Can reverse charge be considered as
                       input tax so that Input Tax Credit can be availed?
            Answer   : Yes. The definition of input tax includes the tax payable under the reverse charge. The credit can be availed
                       if such goods and/or services are used, or are intended to be used, in the course or furtherance of his
                       business. Exporters can thus claim refund of tax paid on such reverse charge.
            Question : What is the period up to which I can keep goods meant for exports in the warehouse?
            Answer   : Warehousing of goods is initially allowed for a period up to six months, which may be further extended
                       by the Assistant /Deputy Commissioner, each extension being for a period not exceeding six months,
                       subject to the verification that the goods have not deteriorated in quality. The maximum period for which
                       goods may be left in the warehouse in which they are deposited, or in any warehouse to which such goods
                       have been removed, is three years from the date on which such goods were first warehoused. Excisable
                       goods shall be deemed to be cleared for home consumption on expiry of the warehousing period
                       including the extensions granted, if any. Duty and interest is charged on such deemed removal.

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