No GST for industry at the time of advance payment for supply of goods

Source: The Hindu Business Line, Nov 19, 2017

New Delhi: In a relief for industry, the GST Council has dropped an earlier requirement of payments of Goods and Services Tax (GST) on advances received for supply of goods.This is a relief for industry as payment of GST on advances was proving to be a major working capital hurdle for businesses.

The GST Council’s latest move has restored the pre-GST position where no excise duty or VAT was required to be paid on advances, said MS Mani, Partner GST, Deloitte India.

However, service providers would continue to be required to pay GST on advances, Mani told BusinessLine.

This is a dampener as even services face similar challenges. Tax experts feel that since GST is a unified law, there should not be divergence in treatment for goods and services considering the fact that accounting treatment is uniform.

This GST Council’s move meets the long standing demand of the industry, particularly by FMCG and auto sectors, said Pratik Jain, Leader-Indirect Tax, PwC.

“Under the VAT regime, there was no tax on advances for goods but was introduced under GST. Since the input credit was only available after receipt of goods, this led to working capital blockage for industry and additional compliance burden,” he said.

Further, there was ambiguity around the State where tax has to be paid in few cases, he added.

Jain also said that requiring GST payment on advances for services is in line with the provisions under the erstwhile service tax laws.

The GST law provides for payment of GST at the time of receipt of advance towards supply of goods or services. In October this year, the GST Council removed the requirement of payment of GST on advance receipts towards supply of goods, for persons having turnover of less than ₹1.5 crore in a year.However, on November 15, this relaxation was extended to all persons, except those opting to pay GST under composition scheme.Now, the GST Council has done away with the requirement to pay GST on advances post November 15 for all persons for supply of goods.

After the GST Council’s move, the time of supply for goods would be the date of issue of invoice by the supplier (or the due date, by when the invoice needs to be issued). This would apply even in case of a change in rate of tax.

The requirement to issue an advance receipt voucher at the time of receipt of advance remains.The GST Council has also now provided the facility of submission of· manual refund claims. This is seen as yet another taxpayer friendly measure for expeditious processing of the refund claims of taxes paid/input tax credits.


Govt may exempt crowdfunding from Companies Act to give start-ups a leg up

Source: Business Standard, Nov 20, 2017

Bengaluru: India is looking to make it easier for start-ups to raise money through the crowdfunding route by exempting such fundraising activities from the provisions of the Companies Act, according to a Livemint report.

The ministry of corporate affairs is in discussions to bring crowdfunding under the ambit of the Securities and Exchange Board of India (Sebi). The government is planning to invoke Section 462 of the Companies Act through which it can exempt any company or business from the Act, the report said.

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Draft labelling rules for prescription drugs unveiled

Source:, Nov 14, 2017

New Delhi: Antibiotics and other prescription drugs must come in packages with warnings printed inside a red rectangular box, the health ministry has suggested in its latest labelling rules aimed at checking antimicrobial drug resistance in India.

Prescription drugs are those that require a medical prescription to be dispensed, unlike over-the-counter drugs.

The ministry had earlier proposed a conspicuous red vertical band running throughout the body of the package with the words “schedule drug” printed on it. However, the regulatory body on drugs and devices—the Central Drugs Standard Control Organisation (CDSCO)—put out a draft notification on its website on Monday with new labelling rules seeking comments and suggestions from stakeholders.

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No extra GST liability on supplies of diplomatic missions, UN bodies: Govt

Source: Business Standard, Nov 13, 2017

The government on Monday clarified that supplies to foreign diplomatic missions and United Nations (UN) organisations will not have any additional impact on the businesses tax liability.

Amid reports of businesses showing unwillingness to give their Good and Services Tax (GST) Unique Identify Number (UIN) while supplying to foreign diplomatic missions and UN bodies, the government said such supplies were like any other business-to-consumer (B2C) sale and hence would not attract any extra tax liability.

“It may be noted that sale or supply to foreign diplomatic missions/UN organisations is like any other B2C sale and will not have any additional effect on the supplier’s tax liability.

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Govt finalising new national education policy: HRD Ministry

Source: Business Standard, Nov 09, 2017

New Delhi: The government is in the process of finalising the new national education policy which will focus on making India’s education system learner-centric instead of teacher-centric, said a top official of the Ministry of Human Resource Development (MHRD) on Thursday.

While addressing the FICCI Higher Education Summit 2017 here, Dr. N. Saravana Kumar, Joint Secretary, MHRD, said, “The government is in the process of finalising the new national education policy which will focus on making India’s education system learner-centric instead of teacher-centric. Also, the highly regulated education sector is being liberalized and private sector participation is being encouraged for India to acquire global citizenship in education.”

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Government plans new telecom policy by February 2018

Source: Business Standard, Nov 07, 2016

New Delhi: The Department of Telecommunications (DoT) is planning to finalise the new telecom policy by February 2018, Communications Minister Manoj Sinha said here on Tuesday.

“We are trying to come out with the new telecom policy by February 2018. High level working groups have started working towards it. We expect to finalise the draft telecom policy by December and place it for public comments,” Sinha told reporters at a press meet. Read the rest of this entry »

New guidelines for shipyards seeking subsidy

Source: The Hindu Business Line, Nov. 02, 2017

New Delhi: With a view to increase domestic sourcing in shipbuilding, the Shipping Ministry has issued new guidelines for shipyards seeking subsidy.

Under the amended guidelines, the number of days available with the shipyards to apply under the policy, as well as to obtain and submit valuation reports of the ships, have been increased, said an official release.

The updated web application also generates a wider choice of international valuers by whom the valuation of a vessel can be carried out. The upgraded version will be administered and monitored by the Directorate General of Shipping, Mumbai, it said. Read the rest of this entry »