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Special Long Term Refinance Schemes – NABARD

Special Long Term Refinance Schemes – NABARD

National Bank for Agriculture and Rural Development introduced three Special Long Term Refinance Schemes to address the issue of rural migration and to give a boost to the agriculture and rural sector in the post-COVID-19 era. The scheme intends to develop all the potential Primary Agricultural Credit Society (PACS) as Multi-Service Centers (MSCs). The scheme also encourages banks to lend micro-food processing activities and create sustainable livelihood and employment opportunities for rural youth as well as reverse migrants. The current article briefs the three special refinance schemes.

Special Long Term Refinance Schemes

The three Special Long Term Refinance Schemes of the National Bank for Agriculture and Rural Development (NABARD) is as follows:

  • Special Long Term Refinance Scheme for Transformation of PACSs as MSCS
  • Special Long Term Refinance Scheme for beneficiaries of the watershed and wadi project areas
  • Special Long Term Refinance Scheme for promoting Micro Food Processing Activities.

Special Long Term Refinance Scheme for Transformation of PACSs as MSCS

The Special Long Term Refinance Scheme for Transformation of PACSs as MSC intends to develop all the potential Primary Agricultural Credit Society (PACS) as Multi-Service Centers (MSCs) for three years commencing from the year 2020.

The objective of the Scheme

The key objective of the scheme is to support the Primary Agricultural Credit Society (PACS) to create quality infrastructure (capital assets) and to increase the business portfolio in tune with the needs of members.

Rate of Refinance

As part of this scheme, National Bank for Agriculture and Rural Development (NABARD) is providing concessional refinance to StCBs at a rate of 3%.

Under this line of credit, NABARD has envisaged the transformation of 35,000 PACS in three years commencing with the transformation of 5,000 PACS in the financial year 2021 and for subsequent years 15,000 PACS each during financial 2022 and financial 2023.

Interest Rate

The ultimate interest rate to be charged from the Primary Agricultural Credit Society will be less than 1% over and above the interest rate charged by NABARD and will be shared by StCB & CCB as per the mutually agreed terms.

Repayment Period

The repayment period of the Special Long Term Refinance Scheme for Transformation of Primary Agricultural Credit Society (PACS) will be up to 7 years.

Special Long Term Refinance Scheme for the Watershed and Wadi Project Areas

The details of the Special Long Term Refinance Scheme for the Watershed and Wadi Project Areas are as follows:

The objective of the Scheme

  • The objectives of the scheme are to promote sustainable economic activities, livelihood, and employment opportunities for the beneficiaries in NABARD supported watershed and wadi project areas.
  • The scheme is encouraging banks to lend at concessional rate to the beneficiaries to address the issue of rural migration
  • The scheme aims to give a boost to the agriculture and rural sector in the post COVID era.

Rate of Refinance

The refinance will be available to all the eligible banks/Financial Institutions at a rate of 3% for a maximum period of 5 years. The revised ultimate lending rate to be charged by banks or a financial institution under the scheme will be revised as 06 months MCLR+1% or EBLR+2.5% whichever is lower.

NABARD has earmarked a refinance amount of Rs.5000 crore from 2020-21 to 2022-23.

Special Long Term Refinance Scheme for Micro Food Processing Activities

The details of the Special Long Term Refinance Scheme for Micro Food Processing Activities are as follows:

The objective of the Scheme

The objectives of the Special Long Term Refinance Scheme is to encourage banks to lend micro-food processing activities and create sustainable livelihood and employment opportunities for rural youth as well as reverse migrants due to the COVID-19 pandemic in the rural areas.

Feature of Scheme

The Special Long Term Refinance Scheme for Micro Food Processing Activities also envisages modernization and enhancing the competitiveness of the existing individual micro-enterprises and ensures their transition to the formal sector in rural areas.

The refinance scheme will give a fillip to the PM Scheme for Formalisation of Micro food processing Enterprises (PM FME) under Aatmanirbhar Bharat Abhiyan by Ministry of Food Processing Industries, Government of India under which about Rs.25, 000 crore investments are expected in the food processing sector.

Rate of Refinance

The concessional refinance at 4% is available to eligible financial institutions viz., commercial banks, and Small Finance Banks, StCBs, Regional Rural Bank and NABARD subsidiaries.

Structured Finance and Partial Guarantee Programme to NBFC-MFIs

The National Bank for Agriculture and Rural Development (NABARD) has also launched a dedicated debt and credit guarantee product to ensure the unhindered flow of credit in rural areas hit by the Covid-19 pandemic. The Structured Finance and Partial Guarantee Programme to NBFC-MFIs are providing a partial guarantee on pooled loans extended to small and mid-sized microfinance institutions (MFIs).

The partially guaranteed loan facility will catalyze much-needed financing to millions of households, agricultural, and business markets to sustain in the post-Covid-19 environment.

Please click on the official link on Special Long Term Refinance Schemes of NABARD  for reference

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Procedure to Apply Scrips under Scheme for Rebate of State Levies (RoSL)

Procedure to Apply Scrips under Scheme for Rebate of State Levies (RoSL)

The Directorate General of Foreign Trade (DGFT) has specified the procedure for application for issuance of Scrips under the scheme for Rebate of State Levies (RoSL) vide a Public Notice No. 25/2015-20 dated 13th October 2020. With this notification, DGFT announced the procedure for issuing RoSL for Shipping Bills before March 7, 2019, under a scrip mechanism. The procedure for applying the recovery mechanism and the new Aayat Niryat Form ANF-4SL is also notified. This article will explain the Procedure to Apply Scrips under Scheme for Rebate of State Levies (RoSL) in detail.

Scheme for Rebate of State Levies (RoSL)

The Government of India has launched the Rebate of State Levies (RoSL) to Support the Textile Sector. The primary objective of the scheme is to reimburse the State levies that garment and made-up exports incurred.

Duty Credit Scrips under RoSL

Duty Credit Scrips (DCS) under the Scheme for Rebate of State Levies (RoSL) is an export promotion benefit offered by the Government of India under the Foreign Trade Policy (FTP) 2015-2020. The DCS provides tax incentives on exports, which can be used by exporters to set off their import duties. Foreign Trade Policy 2015-2020 lays down the features and the provisions related to Duty Credit Scrips. The Scheme for Rebate of State Levies (RoSL) is implemented and administrated by the Ministry of Textiles, in association with the Directorate General of Foreign Trade (DGFT).

Synopsis of DGFT Notification

The synopsis of Procedure for application and issuance of Scrips under Scheme for Rebate of State Levies (RoSL) is as follows:

  • Application for claiming rebate under the Rebate of State Levies (RoSL)scheme needs to be filed online in ANF-4SL using a digital signature on the official website of DGF.
  • A maximum of 50 Shipping Bills will be allowed to be attached along with one application.
  • Rebate under scrip mechanism is admissible only for Shipping Bills for which Drawback has been disbursed and ROSL amount has not been disbursed.
  • Duty Credit scrips will be valid for 2 years from the date of issue.
  • Applications related to shipping bills with Let Export Order dated between 1st October 2017 and 6th March 2019 and with LEO dated before 1st October 2017 are to be filed separately.

Note: It is also notified that ROSL scripts would be available only for those shipping bills which have been transmitted from the ICEGATE server to the DGFT server and for which exporters have not received any RoSL account.

Form for claiming rebate under RoSL – Form ANF 4SL

As per the notification, an application for claiming rebate under RoSL needs to be filed online in ANF-4SL, using a digital signature, on the official website of DGFT.

  • The exporter is required to link relevant Electronic Data Interchange shipping bills and e-BRCs and submit the application through online mode only.
  • A maximum of 50 shipping bills will be allowed to be attached in one single application by the exporter in the online module.

Rebate under scrip mechanism under Rebate of State Levies is admissible only for shipping bill for which Drawback has been shipping and RoSL amount has not been disbursed. Only those Shipping bills, on which Customs authorities/ ICEGATE have not disbursed RoSL will be transmitted online by ICEGATE to the DGFT Server for the exporter to apply. However, the applicant needs to ensure that no application is filed against the shipping bill for which the RoSL claim has been received from the Customs Authorities along with Drawback.

The Form ANF – 4SL for claiming rebate under the Scheme for Rebate of State Levies (RoSL) is as follows:

PN-25 dt-13.10.2020 (E)-5-8

The Facility of Split Scrips

As per this notification, the applicant needs to ensure that they are applying only to the concerned Jurisdictional Regional Authorities (RA) for getting the scrip and shall submit a declaration to that effect while applying for the scrip online.

However, the limitation imposed for choosing an RA at the beginning of the financial year and maintaining the same RA for all applications in that Financial Year shall not apply.

Choice of Port of Registration for RoSL Scrips

The applicant can choose the Port of registration from any one of the (Electronic data interchange) EDI ports from where export has been made for the shipping bills in that online application. Duty Credit Scrip will be issued with that single EDI port of registration.

After system based approval of the final rebate amount, the scrip will be issued by RAs in a paperless mode. However,

Regional Authorities will scrutinize 2 per cent of issued RoSL applications every month under a Risk Management System (RMS). The DGFT will generate the RMS system.

Registration of Scrips

Duty credit scrip needs to be registered at the port prescribed on the scrip. This is to be done before allowing usage of duty credit. Once registered at EDI port, scrip can be automatically used at any EDI port for the import and any manual port under Telegraphic Release Advise (TRA) procedure

The validity period of Duty Credit Scrip

Duty Credit Scrip will be valid for 2 years from the date of issue and must be valid on the date on which actual debit of duty is made. Revalidation of Duty Credit Scrip will not be permitted.

Prescribed Date for Application Submission

  • For filing claims under RoSL, applications containing shipping bills with Let Export Order (LEO) date between 01.10. 2017 and 06.03.2019 are required to be submitted separately.
  • A separate application containing shipping bills with the LEO date before 01.10.2017 needs to be submitted.
  • Last date for submitting applications containing shipping bills with LEO date from 01.10. 2017 to 06.03.2019 would be 30.06.2021.
  • The last date for filing applications containing shipping bills with LEO date before 01.10.2017 would be notified later

After these submission deadlines, no application will be allowed to be submitted and the shipping bills would become time-barred. There is no provision of late cut under the Scheme for RoSL under the scrip mechanism.

Eligibility for Claim under the Scheme for RoSL

All exporters are eligible for claiming under the Scheme for RoSL, except the entities/IEC which is in the Denied Entity List of the DGFT.

Recovery Mechanism

The record of shipping bills and other documents related to export on which a claim under the RoSL Scheme has been filed is required to be maintained by the applicant for 3 years from the date of issuance of scrip for post-issue scrutiny and recovery purposes.

Regional Authority may call such documents in original at any time within 3 years. In case the applicant fails to submit the original documents on demand by Regional Authority, the applicant shall be liable to refund the rebate granted along with interest at the rate prescribed under Section 28AA of Customs Act, 1962, from the date of issuance of scrip.

Click here to know more about the official notification of DGFT regarding the Procedure for application and issuance of Scrips under the Scheme for Rebate of State Levies (RoSL) scheme.

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CBDT Clarification on New TCS Provisions

CBDT Clarification on New TCS Provisions

The Finance Act, 2020 , widens the scope of TCS provisions to cover the sale of goods, sale of overseas tour packages and overseas remittance of funds under the Reserve Bank of India’s (RBI) Liberalized Remittance Scheme (LRS). After the introduction of this new TCS Provisions, there were several representations for seeking clarifications on the applicability of the provisions relating to Tax Collection at Source (TCS) on certain goods introduced vide Finance Act, 2020. To address such queries the Central Board of Direct Taxes (CBDT) has issued a detailed clarification on new TCS Provisions.

Finance Act, 2020– TCS Provisions

The provisions of ‘Tax Collection at Source’ i.e. TCS are covered under Section 206C of the Income Tax Act, 1961. The Finance act has proposed the insertion of two new Sub-section namely (1G) and (1H) to Section 206C. With the introduction of two new sub-Sections, the scope of the ‘Tax Collection at Source’ has been widened. The following transactions are proposed to be covered under TCS:

  • Transactions covered under Liberalised Remittance Scheme  (Section 206C (1G)(a))
  • Overseas tour program package (Section 206C (1G)(b))
  • TCS on sale of goods (Section 206C (1H))

Note on New TCS Provisions

The Finance Act, 2020 has amended provisions relating Provisions

The Finance Act, 2020 has amended provisions to Tax collected at source (TCS) with effect from 01.08.2020 to provide that seller of goods will collect tax at 0.1 per cent (0.075% up to 31.03.2021) if the receipt of sale consideration from a buyer exceeds Rs.50 lakh in the fiscal year.

  • As per the new TCS provision, the seller needs to collect tax only if his turnover exceeds Rs. 10 crores in the last fiscal year.
  • The export of goods has also exempted from the applicability of the new TCS provisions.

Applicability of New TCS Provisions – Prescribed Period

The Central Board of Direct Taxes (CBDT) notified that the new TCS provision will be applicable only on the amount received on or after 1st October 2020.

For example, if a seller has received Rs. 1 crore before 01.10.2020 from a particular buyer and receives Rs. 5 lakh after 01.10.2020 would be required to collect tax on Rs. 5 lakh only and not on Rs. 55 lakh (Rs.1.05 crore – Rs. 50 lakh (threshold)) by including the amount received before 1st October 2020

Applicability of New TCS Provisions – Amount of Transaction

It has also been reported in a certain section of the media that every transaction will attract this TCS. To address such an issue, CBDT clarified that this TCS applies only in cases where the receipt of sale consideration exceeds Rs. 50 lakh in a financial year.

As the threshold is based on the yearly receipt, it may be noted that only for the calculation purpose of this threshold of Rs. 50 lakh, the receipt from the beginning of the fiscal year i.e. from 01.10.2020 will be taken into account.

For example, in the above illustration, the seller has to collect tax on receipt of Rs. 5 lakh after 01.10.2020 because of the receipts from 1st April 2020 i.e. Rs. 1.05 crore exceeded the specified threshold of Rs. 50 lakh.

Applicability of New TCS Provisions – The amount of sale consideration

The seller in most cases maintains a running account of the buyer in which payments are generally not linked with a particular sale invoice. To simplify and ease the compliance of the collector, CBDT clarified that the TCS provision will be applicable on the amount of all sale consideration received on or after 01.10.2020 without making any adjustment for the amount received in respect of sales made before 01.10.2020.

CBDT also announced that the collector needs to identify and exclude the amount in respect of sales made up to 30.09.2020 from the amount received on or after the 01.10.2020

TCS is not an Additional Tax

CBDT clarified that TCS is not an additional tax but is in the nature of advance income-tax/TDS for which the buyer would get the credit against his/her actual income tax liability and if the amount of TCS is more than his/her tax liability, the buyer will be entitled to refund of the excess amount along with interest.

Eligibility of Seller to collect TCS

  • The CBDT is clarified that the TCS Provision is not applicable to every seller.
  • To reduce the compliance burden, the new TCS provision is applicable to only those sellers whose business turnover exceeds Rs. 10 crore

Note: Those having a turnover of less than Rs. 10 crores will not be required to collect TCS.

  • The TCS collection under this new provision would be required to be made by persons who would already be complying with the other provisions of TDS/TCS.

The CBDT notification pertaining to the CBDT Clarification on Tax Collected at Source Provision is attached here for reference:

Press-Release-Clarification-on-doubts-arising-on-account-of-new-TCS-provisions-dated-30-09-2020

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Project Imports Scheme for the Imports of Capital Goods for Food Processing Projects

Project Imports Scheme for the Imports of Capital Goods for Food Processing Projects

Ministry of Food Processing Industries has launched the Project Imports scheme for the imports of capital goods for food processing projects. As per the Project Imports scheme, the goods imported to the setup of an Industrial Project or substantial expansion of existing industrial projects are subjected to single classification under the Customs Tariff Act, 1975.  As part of the scheme, capital goods/machinery/equipment for food processing industries/projects can be imported at a concessional rate of 5%. The current article briefs the Project Imports scheme for the imports of capital goods for food processing projects.

The objective of the Project Imports Scheme

The Project Import Scheme’s primary objective is to simplify the assessment of import of capital goods and all the related items required for setting up of a food processing projects by the levy of a flat rate of duty.

Eligible Products under Project Import Scheme

  • All food products including cold storage, cold room (including farm level pre-cooling)
  • Industrial projects for preservation, storage, or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic, and marine produce and meat

Food Projects Import – Governing Law

Application for grant of concessional rate of customs duty under “Project Import†Scheme in respect of imported machinery and equipment for initial setting up of the project/for effecting substantial expansion of the project is governed by the provisions under Project Import Regulation, 1986 as amended from time to time.

Condition to avail Sponsorship for Project Import related to Food Industry

The essential requirements to be fulfilled for being eligible for a concessional rate of duty under the project import scheme are as follows:

  • The machinery could be imported at one port or different port at a time or at different times for implementation of the same project subject to the condition that the time gap may not be more than a year
  • The recommendation will be as per Project Import Regulations as amended from time to time and subject to all other usual terms and conditions prescribed by the Central Board of Excise and Customs, Department of Revenue, Government of India.

Documents Required

The list of documents and information required for import of machinery and equipment for initial setting up of the project / for effecting substantial expansion of the project under the Project Import Scheme is as follows:

  • Copy of  Small Scale Industries(SSI) registration for Small Scale Units
  • Industrial Entrepreneurial Memorandum for other units
  • The plant layout indicating the machines already installed and new machines to be installed and progress made as on date of application
  • List of capital goods (4 copies) with specification being imported supported by Performa invoice from the machinery supplier

Application Procedure for availing sponsorship for import of project

Organizations desirous of availing sponsorship for import of projects relating to the Food Processing industry may apply to the Ministry of Food Processing Industries (MOFPI). The application complete in all respect may be sent at the following address:

  • Economic Advisor
  • Ministry of Food Processing Industries
  • Panchsheel Bhawan
  • August Kranti Marg
  • New Delhi-110049

Application for grant of Concessional rate of customs duty under ‘Project Import’ scheme in respect of imported machinery and equipment for initial setting up of the project / for effecting substantial expansion is as follows:

ProjectImportGuidelines_0 (1)-3-4

Application complete in all respect with documents will be received along with the request for sponsorship for import of plant/ project specified in the Regulations, the Ministry will consider the issue sponsorship letter for the import of project

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Recent amendments in GST return filing due dates

Recent amendments in GST return filing due dates

The Central Board of Indirect Taxes and Customs, via various notifications issued on 15th October 2020, came up with the following amendments-

  1. Amendments relating to due dates of Form GSTR-1;
  2. Amendments relating to due dates of Form GSTR-3B; and
  3. Exemption from the filing of an annual return.

The present article briefly describes the amendments.

Amendments in due dates of GST return filing in Form GSTR-1

Vide notification no. 74/2020- Central Tax dated 15th October 2020, it has been notified that the registered taxpayer having aggregate turnover up to INR 1.5 Crores should file return in Form GSTR-1 within the following due dates-

Sr. No. Tax Period (Quarterly) Due Date
1 October 2020 to December 2020 13th January 2021
2 January 2021 to March 2021 13th April 2021

Further, vide notification no. 75/2020- Central Tax dated 15th October 2020, the Central Board of Indirect Taxes and Customs notifies the following due dates for filing return in Form GSTR-1 for registered taxpayer having an aggregate turnover more than INR 1.50 Crores-

Sr. No. Tax Period (Monthly) Due Date
1 October 2020 11th November 2020
2 November 2020 11th December 2020
3 December 2020 11th January 2021
4 January 2021 11th February 2021
5 February 2021 11th March 2021
6 March 2021 11th April 2021

Amendments relating to GST return filing due dates of Form GSTR-3B

Notification no. 76/2020-Central Tax dated 15th October 2020 prescribes the return filing due dates of Form GSTR-3B for different categories of taxpayers for the period October 2020 to March 2021. Following table covers the different categories of taxpayers and corresponding return filing due dates-

Sr. No. Categories of Taxpayer Tax period and corresponding due dates
1 A taxpayer having aggregate turnover of more than INR 1.5 Crores
Tax period Due dates
October 2020 20th November 2020
November 2020 20th December 2020
December 2020 20th January 2021
January 2021 20th February 2021
February 2021 20th March 2021
March 2021 20th April 2021
2

A taxpayer having aggregate turnover up to INR 1.50 Crores and having principal place of business in any of the following states/ union territories-

·        Chhattisgarh

·        Gujarat

·        Maharashtra

·        Madhya Pradesh

·        Goa

·        Karnataka

·        Telangana

·        Tamil Nadu

·        Kerala

·        Andhra Pradesh

·        The union territories of Diu and Daman

·        The union territories of Dadra and Nagar Haveli.

Tax period Due dates
October 2020 22nd November 2020
November 2020 22nd December 2020
December 2020 22nd January 2021
January 2021 22nd February 2021
February 2021 22nd March 2021
March 2021 22nd April 2021
3

A Taxpayer having aggregate turnover up to INR 1.50 Crores and having principal place of business in any of the following states/ union territories-

·        Punjab

·        Himachal Pradesh

·        Haryana

·        Rajasthan

·        Sikkim

·        Uttar Pradesh

·        Nagaland

·        Manipur

·        Arunachal Pradesh

·        Mizoram

·        Bihar

·        Tripura

·        Assam

·        West Bengal

·        Jharkhand

·        Meghalaya

·        Uttarakhand

·        Odisha

·        Delhi

·        Chandigarh

·        The union territories of Jammu and Kashmir

·        The union territories of Ladakh

 

 

Tax period Due dates
October 2020 24th November 2020
November 2020 24th December 2020
December 2020 24th January 2021
January 2021 24th February 2021
February 2021 24th March 2021
March 2021 24th April 2021

Exemption from filing an annual return in Form GSTR-9-

Vide notification no. 77/2020- Central Tax dated 15th October 2020, an annual return filing in Form GSTR-9 for the Financial Year 2019-2020 is made optional for the taxpayer whose aggregate turnover doesn’t exceed INR 2 Crores.

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Revised Procedure and Criteria for Export of Diagnostic Kits

Revised Procedure and Criteria for Export of Diagnostic Kits

The Directorate General of Foreign Trade (DGFT) has revised the procedure and criteria for the export of Diagnostic Kits vide Trade Notice No.29/2020-21. With this notification, DGFT has fixed the export quota for Diagnostic Kits for the period from September 2020 to November 2020. As per the revised procedure, the firm applies for the export authorization should be the manufacture of VTM/RNA Extraction kits/RT-PCR Kits. The present article briefs the Revised Procedure and Criteria for Export of Diagnostic Kits

Important Announcement for Exporter

  • The Trade Notice on 13th October 2020 has outlined the revised Procedure and Criteria for submission and approval of online applications for the export of Diagnostic Kits.
  • The DGFT has announced that the Diagnostic Kits is put it in the restricted category, making it mandatory for exporters to get a license from DGFT for export of the product.
  • As per the revised procedure, the DGFT also announced that the export quota for Diagnostic Kits has been fixed and shipment will be allowed for the period from September 2020 to November 2020.
  • The exporter (only manufactures) can apply for export authorization as Non-SCOMET Restricted items and exports are not required to forward any hard copy of the application via email or post to DGFT.
  • Exporters who have already filed an online application for the export of diagnostic kits need not apply again. Even though, they need to submit the required documents through export-dgft@nic.in mentioning the file number in the subject of the mail.

Amendment in Export Policy of Diagnostic Kits – Trade notice dated June 10th,2020

As per the Trade Notice No.08 dated 10.06.2020, DGFT has amended the Export Policy of Diagnostic Kits, Laboratory Reagents and Diagnostic Apparatus and placed their exports in the Restricted Export Item (Non-SCOMET) category from free earlier. With this notification, the DGFT has placed Diagnostic Kits exports in the Restricted Export Item category from free earlier. Hence the exporter needs to obtain an export authorization from the Government for shipments of Diagnostic Kits.

Procedure and Criteria for Export of Diagnostic Kits – Trade notice dated July 30th, 2020

As per the trade notice dated July 30, DGFT also announced that the export quota for Diagnostic Kits has been fixed and the application filed for the export of Diagnostic Kits (VTM/RNA Extraction kits/RT-PCR Kits) from 5th – 8th August 2020 will only is considered for the issue of export authorization

All applications for the export of Diagnostic Kits will be processed as per the Handbook Procedure. Only one application per Import Export Code (IEC) will be considered during a Month.

Know more about trade notice dated July 30 – Procedure and Criteria for Export of Diagnostic Kits

Revised Date for Application Submission

The application filed for the export of Diagnostic Kits (VTM/RNA Extraction kits/RT-PCR Kits) from 19th – 31st October 2020 will only is considered for the issue of export authorization. All applications for the export of Diagnostic Kits will be processed as per the Handbook Procedure.

Note: Only one application per Import Export Code will be considered during the month.

The validity of Export Authorization/License

The validity of Export Authorization for the export of Diagnostic Kits (VTM/RNA Extraction kits/RT-PCR Kits) is 3 months from the date of the issue.

Revised Criteria for Issuance of Export License

As per the revised guidelines, the below-mentioned eligibility criteria are applicable for the issuance of Export licenses:

  • The firm applies for the export license should be the manufacture of VTM/RNA Extraction kits/RT-PCR Kits.
  • The applicant needs to submit the following documents to DGFT for obtaining the Export License
    • Documentary proof of manufacturing of VTM/RNA Extraction kits/RT-PCR Kits.
    • Copy of Purchase order or Invoice
    • Copy of the Import Export Code  of the Firm
  • Undertaking duly signed by the authorized signatory in company letterhead to be submitted by the manufacturer certifying that as on date, all domestic commitments have been fulfilled.

Note: All documents must be duly self–attested by the authorized person of the firm.

Procedure to get the License for Export of Diagnostic Kits

The exporter can obtain the Export Authorization of Non-SCOMET Restricted items by applying DGFT‘s ECOM application module . After a successful login using the ECOM application module through Digital Certificate on the new DGFT website, the ECOM Reference number will be displayed.

After providing the following details, the exporter needs to upload all supporting documents (refer above).

  • Shipment Details
  • Details of Products to be exported
  • Details of foreign Buyer or Consignee

Once the DGFT accepted the license request, the export authorization for the shipment of Diagnostic Kits will be issued.

Click here to know more about Procedure to Obtain Export Authorization of Non-SCOMET Restricted items

Other Conditions to Get Export License

  • All the relevant documents as specified above must be submitted along with the application to verify the eligibility criteria and to issue an export license.
  • Incomplete applications will not be considered for any allocation.
  • Any application received through email or submitted outside the timeline specified will not be considered for the monthly quota.

The DGFT’s notification pertaining to the Revised Procedure and Criteria for Export of Diagnostic Kits is attached below for reference.

Trade Notice 29

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Electronic filing and Issuance of Preferential Certificate of Origin (CoO)

Electronic filing and Issuance of Preferential Certificate of Origin (CoO)

The Director-General of Foreign Trade (DGFT) issued Trade Notice for Electronic filing and Issuance of Preferential Certificate of Origin (CoO) for India’s Exports under GSP, GSTP, India-Malaysia CECA, India-Singapore CECA with effect from 15th October 2020. The trade notice issued by DGFT informed that the Common Digital Platform for Issuance of Certificate of Origin is being expanded to add four more Free Trade Agreements / Preferential Trade Agreements to facilitate the electronic application of CoOs.

Common Digital Platform for Issuance of Certificate of Origin – CoO e-platform

The common digital platform is single-point access for Preferential Certificate of Origin (CoO) for all Free Trade Agreements / Preferential Trade Agreements for all agencies and all products. This CoO e-platform is designed to facilitate exporters through a secure, electronic, paperless Certificate of the Origin issuance process. All designated Certificate of Origin issuing agencies is required to work through this portal.
Services of Common Digital Platform

Certificate of Origin (CoO) for exports from India under the following trade agreements are already being applied and issued through the e-platform.

  • ICPTA – India Chile Preferential Trade Agreement
  • SAFTA – South Asia Free Trade Agreement
  • SAPTA – SAARC Preferential Trade Agreement
  • IKCEP – India Korea Comprehensive Economic Partnership Agreement
  • IJCEPA – India Japan Comprehensive Economic Partnership Agreement
  • AIFTA – ASEAN India Free Trade Agreement
  • ISFTA – India Sri Lanka Free Trade Agreement
  • APTA – Asia Pacific Trade Agreement

New Services as per DGFT Trade Notice

To further this trade facilitation initiative, the Preferential Certificate of Origin for exports to various other countries under the following four trade agreements will also be applied and issued from the CoO e-platform with effect from 15th October 2020

  • GSP – Generalized System of Preferences
  • GSTP – Global System of Trade Preferences
  • IMCECA – India Malaysia Comprehensive Economic Cooperation Agreement
  • ISCECA – India Singapore Comprehensive Economic Cooperation Agreement

Important Announcement for Exporter

The given Certificate of Origin applications for exports from India under GSTP, IMCECA and ISCECA need to be submitted through the e-COO platform to the designated issuing agencies.

No manual application for such a CoO should be submitted to an issuing agency after 15.08.2020. Any manual applications submitted before the prescribed date may however be processed by the issuing agencies.

Manual submission of GSP CoO applications

CoO applications for exports under GSP may also be submitted through Common Digital Platform with effect from 15th October 2020. However, the earlier procedure of submitting the manual Certificate of Origin applications (under GSP) to the designated issuing agency will also be in operation. There will be a transition period of 3 months when both the online and the physical process shall be operated. Manual submission of GSP CoO applications is accordingly allowed to continue up to 14.01.2021 or until further orders

Exporter Registration in Common Digital Platform

The concerned Exporters may please take note of the following additional points for registering in the Common Digital Platform:

  • Digital Signature Certificate (DSC) would be required for electronic verification. The digital signature would be the same as used in other DGFT applications
  • The digital signature may be Class II or Class III and should have the IEC of the firm embedded in the DSC
  • Any new applicant exporter needs to initially register at the e-platform. The password will be sent on the email and mobile number of the IEC holder.
  • If the IEC holder desires to update the email on which communication is to be sent, the same will be done by using the ‘IEC profile Management’ service on the DGFT website
  • Once registration is completed, the IEC branch details would be auto-populated as per the DGFT-IEC database.
  • The applicant is required to ensure that updated IEC details are available in the DGFT system. Necessary steps may be taken to modify the IEC details online, whenever required

Exporter Registration Procedure

The exporter needs to access the official website of Common Digital Platform for Issuance of Certificate of Origin. Before proceeding with the registration process, confirm the following:

  • Exporters are required to update the IEC details on DGFT portal (specifically mobile number & email id) as every basic information regarding exporter required will be fetched from there only.
  • Exporters need to obtain the Digital Signature Certificate containing the IEC and name of any listed director in the IEC portal of DGFT

From the home page, click on the Registration option or the already registered user can log in to the portal using the credentials.

Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - Home Page
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – Home Page

Insert the Digital Signature Certificate and Enter 10 digit IEC Code to start the registration process and Read Declaration select “I Agree†and submit “Save & Next†to proceed with the registration.

Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - User Registration
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – User Registration

Check the details and furnish the required details as required. On successful registration, the exporter can go to the login screen and login with the credentials received on email.

  • User Name – Registered IEC (10 digit alphanumeric/numeric code)
  • Password – As received on e-mail.

Procedure to Apply Certificate of Origin (CoO) through Common Digital Platform

From the Home page of Common Digital Platform , click on the online exporter Registration and login option. Provide the credentials along with the captcha and click on login button.

Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - Login Page
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – Login Page

After login to the portal, the dashboard will display, select the Online application for Certificate of Origin (CoO) Scheme option. The application form will display, provide the following details:

  • Free Trade Agreement
  • Details of CoO Request before/after shipment
  • Issuing Agencies/Regional offices
  • Exporter Details
  • Product details
  • Raw Material
  • Description of Goods
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - CoO Application
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – CoO Application

After furnishing the details, upload the digitally signed documents and click on submit button.

Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - CoO Application2
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – CoO Application2

Note: Must attach DSC for uploading the documents and submitting the application.

Electronic filing and Issuance of Preferential Certificate of Origin (CoO) - CoO Application4
Electronic filing and Issuance of Preferential Certificate of Origin (CoO) – CoO Application4

Click on the Preview Certificate to View draft CoO / Click make Payment to initiate the payment process. After successful application submission, the exporter will receive an alert in the form of email and SMS. The same also is informed to the office where the application is filled.

Procedure to apply for Duplicate Certificate of Origin

After login to the portal, click on the Duplicate Certificate of Origin option, a list of the already submitted application is available wherein the exporter can apply for the duplicate certificate.

Upload a requisite document with the proper reason for applying for the same. Once the documents are uploaded, the exporter can make payment. After successful payment, the page redirected to the list of “Submitted Duplicate Certificatesâ€.

Get the Certificate of Origin (CoO)

After the submission of applications under the above mentioned FTAs/PTAs, the Common Digital Platform will generate all the existing set of CoO copies along with an additional copy i.e. electronic copy. The electronic copy shall bear the image signature of the officer and stamp of the issuing agency. The exporter may, however, get the remaining copies duly ink-signed by the issuing officer with the stamp from the designated issuing office. The copies of the CoOs so issued may be collected by post or in person, for any submission to the FTAs/PTAs partner countries authorities.

The DGFT’s notification about the Preferential Certificate of Origin (CoO) is as follows:

 

The post Electronic filing and Issuance of Preferential Certificate of Origin (CoO) appeared first on IndiaFilings – Learning Centre .

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GST for Works Contract

Courtesy: CA Yashwant Kasar FCA, DISA, CISA, CGEIT, PMP, FAIA File type: PDF / Pages: 39 / File Size: 1.5 MB CLICK HERE TO DOWNLOAD PDF

http://www.gstindia.com

Blocking of e-Way Bill (EWB) generation facility after 15th October 2020

Blocking of e-Way Bill (EWB) Generation Facility After 15th October 2020

The Goods and Services Tax Network (GSTN) has issued notices to taxpayers regarding the restriction of the E-Way Bill (EWB) generation facility after 15th October 2020. E-way bill generation facility would be restricted in case of taxpayers with turnover over Rs.5 crore fail to file their GSTR-3B returns , for a consecutive period of two months or more. The blocking of the E-Way Bill (EWB) generation facility is briefly explained in the present article.

Gist of Notification

Taxpayers who have defaulted in the filing of 2 or more GSTR 3B returns, Upto the tax period of August 2020, i.e. September 2020 return, are advised to file their returns immediately, as the E-Way Bill (EWB) generation facility for taxpayers, having Aggregate Annual Turn Over above Rs 5 Cr will be blocked after 15.10.2020, as per GST Council decision.

Blocking the e-way bills – Rule 138 E (b) of the CGST Rules, 2017

As per the Rule, 138 E (b) of the CGST Rules, 2017, the E Way Bill generation facility of a taxpayer is liable to be blocked, in case the person fails to file the GSTR-3B returns, for a consecutive period of two months or more. The system of e-way bill blocking was implemented from the 02.12 2019.

As per the rule, when a taxpayer fails to file GSTR-3B for two or more consecutive months on the GST portal, the same will be communicated to the e-way bill system and the Goods and Services Tax Identification Number will be blocked. The GSTIN of the blocked taxpayers cannot be used for generating e-way bills (EWB) either as Consignor or Consignee. It means the taxpayer will not be able to receive goods if the GSTIN gets blocked.

Applicability of EWB Blocking

As per the GST council announcement, this provision will be applicable for the taxpayers whose Aggregate Annual Turn Over is more than Rs 5 Crores.

If the GSTIN associated with the respective PAN with Aggregate Annual Turn over Rs 5 Crore has failed to file the GSTR-3B Return up to the month of the tax period of August 2020, their EWB generation facility will be blocked on the EWB portal.

With this notification, Government announced that the EWB generation facility for such GSTINs (whether as consignor or consignee or by transporter) will be blocked on EWB Portal after 15.10.2020.

Non-Applicability

E-Way Bill (EWB) generation facility will not be restricted for the following taxpayers:

  • If the taxpayer is not registered on the EWB portal
  • If the taxpayer has already filed the GSTR-3B Return for August 2020
  • If the Aggregate Annual Turn Over (PAN-based) is below Rs 5 Crore

Procedure to Unblock the e-way bill

Filing of GSTR-3B

Once the defaulting taxpayer files GSTR-3B for the defaulting period, his/her GSTIN will get unblocked automatically by the next day. A taxpayer can also generate the e-way bill soon after filing his returns by following the steps below:

  • Access the E-Way Bill portal and choose the option ‘Search Update Block Status
  • Provide the details such as the GSTIN, CAPTCHA Code and click on ‘Go
  • Click on the Update Unblock Status option from GST Common Portal’; this will reflect the recent filing status.

Note: In case this doesn’t work, a taxpayer can reach out to the GST Help Desk and get the query resolved.

The official notification pertaining to Blocking of e-Way Bill (EWB) Generation Facility After 15th October 2020 is as follows:

EWB_1210_2020

The post Blocking of e-Way Bill (EWB) generation facility after 15th October 2020 appeared first on IndiaFilings – Learning Centre .

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Clarification on cumulative applicability of rule 36(4)

Clarification on cumulative applicability of rule 36(4) 

The present article covers the recent clarification issued by the Central Board of Indirect Taxes and Customs, vide circular no. 142/12/2020- GST dated 9th October 2020, with regard to the           applicability of rule 36(4) of the Central Goods and Services Tax Rules, 2017 for February 2020 to August 2020 and its effect thereon while filing return in Form GSTR-3B for the month of September 2020.

Understanding the basics of rule 36(4)-

Rule 36(4) of the Central Goods and Services Tax Rules, 2017 was for the first time introduced vide notification no. 49/2019- Central Tax dated 9th October 2019. The same was later on amended vide notification no. 75/2019- Central Tax dated 26th December 2019.

The provisions basically restrict the availment of the input tax credit by the registered person in Form GSTR-3B whose corresponding details of sales are not reflected/ uploaded by the supplier on the GST portal in Form GSTR-1 to 10% of the eligible input tax credit. In short, the input tax credit shall not exceed 10% of the eligible credit reflected in Form GSTR-2A .

Temporary relaxation in compliance with provisions of rule 36(4)-

On account of COVID-19 pandemic, the Central Board of Indirect Taxes and Customs announced temporary relaxation vide notification no. 30/2020- Central Tax dated 3rd April 2020.

As per the relaxation, conditions in rule 36(4) will apply cumulatively for the period February 2020 to August 2020. Accordingly, the GST return in Form GSTR-3B for the period September 2020 needs to be furnished considering the cumulative adjustment of the input tax credit for the months February 2020 to August 2020.

Recent clarification in the matter-

Post completion of relaxation, filing of GST return in Form GSTR-3B for the month of September 2020 becomes quite crucial. In order to clarify the position to some extent, the Central Board of Indirect Taxes and Customs has issued circular dated 9th October 2020. As per the clarification, the taxpayers are advised to follow below steps before the filing of the return in Form GSTR-3B-

  1. Determine the details of invoices uploaded by the suppliers via Form GSTR-1 for the period February 2020 to August 2020. Such details will include all the invoices uploaded till the due date of filing of Form GSTR-1 for the month of September 2020.
  2. The taxpayer is required to reconcile the following figures-
    • Input tax credit availed by the taxpayer in Form GSTR-3B return for the period February 2020 to August 2020, with
    • The details of invoices and debit notes uploaded by the suppliers for the period February 2020 to August 2020 (i.e. eligible input tax credit).

It should be noted here that the cumulative amount of input tax credit availed by the taxpayer in Form GSTR-3B should not exceed 110% of the cumulative amount of an eligible input tax credit.

Treatment of excess input tax credit availed-

Board, vide the circular, has clarified the consequence of excess input tax credit availed (i.e. more than 110% of eligible input tax credit). Accordingly, while filing return in Form GSTR-3B for the month of September 2020, the taxpayer is required to reverse the excess input tax credit so availed in Table 4(B)(2).

In case the taxpayer fails to reverse the excess input tax credit, the same will be treated as availment of ineligible input tax credit during the month of September 2020.

Illustration-

Let us understand the above concept with the help of an example-

The details of input tax credit availed and an eligible input tax credit of Mr. A for the period February 2020 to September 2020 is tabulated hereunder-

Months Input tax credit availed by Mr A as reflected in Form GSTR-3B Eligible input tax credit as per invoices uploaded by the supplier in Form GSTR-1
February 2020 50,000 45,000
March 2020 25,000 21,000
April 2020 30,000 27,000
May 2020 10,000 10,000
June 2020 42,000 41,000
July 2020 26,000 22,000
August 2020 18,000 15,000
Cumulative total for the months February to August 2020 2,01,000 1,81,000
September 2020 29,000 25,000

Cumulative treatment is to be given for the months February 2020 to August 2020, as per the relaxation provided vide notification no. 30/2020- Central Tax dated 3rd April 2020. Accordingly, a maximum eligible input tax credit for the cumulative period February 2020 to August 2020, considering the restriction provided under rule 36(4) would be as under-

Eligible input Tax Credit as per the invoices uploaded by the supplier-        INR 1,81,000

10% of the eligible input tax credit (i.e. 10% of INR 1,81,000)           –         INR    18,100

Maximum eligible input tax credit as per restriction under rule 36(4)  –         INR 1,99,100

However, as per the above example, the taxpayer has cumulatively availed input tax credit of INR 2,01,000. Hence the taxpayer is required to reverse the ineligible input tax credit of INR 1,900. While filing return in Form GSTR-3B for the month of September 2020, the taxpayer is required to reflect the reversal of INR 1,900 in table 4(B)(2).

Importantly, provisions of rule 36(4) will apply individually to the month of September 2020.

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