No. 26/2018–Central Tax

New Delhi, the 13th June, 2018

CENTRAL BOARD OF INDIRECT TAXES AND CUSTOMS

Highlights:

  1. Addition made to taxable value under clause (b) of sub-section (2) of section 15 for expenses incurred by recipient of service which was supposed to be paid service provider shall deemed to have been paid for input tax credit purpose.

  2. Time period for clearing exam for GST Practitioner for the date of registration revised from 12 month to eighteen months

  3. From 01st July, 2017, in rule 89, for sub-rule (5), the following shall be substituted, namely:-
    “(5) In the case of refund on account of inverted duty structure, refund of input tax credit shall be granted as per the following formula:-

Maximum Refund Amount = {(Turnover of inverted rated supply of goods and services) x Net ITC ÷ Adjusted Total Turnover} – tax payable on such inverted rated supply of goods and services.

Explanation:- For the purposes of this sub-rule, the expressions –

(a) Net ITC shall mean input tax credit availed on inputs during the relevant period other than the input tax credit availed for which refund is claimed under sub-rules (4A) or (4B) or both; and

(b) Adjusted Total turnover shall have the same meaning as assigned to it in sub-rule (4).”

  1. Minimum limit of Rupees 5000 for single tax invoice including Taxes for claiming refund has been removed with not limit and can claimed against proper tax invoice of any value w.e.f from 1st july 2017

  2. Provision amended for anti-profiteering as below:

in rule 133, for sub-rule (3), the following shall be substituted, namely:-

“(3) Where the Authority determines that a registered person has not passed on the benefit of the reduction in the rate of tax on the supply of goods or services or the benefit of input tax credit to the recipient by way of commensurate reduction in prices, the Authority may order-

(a) reduction in prices;

(b) return to the recipient, an amount equivalent to the amount not passed on by way of commensurate reduction in prices along with interest at the rate of eighteen per cent. from the date of collection of the higher amount till the date of the return of such amount or recovery of the amount including interest not returned, as the case may be;

(c) the deposit of an amount equivalent to fifty per cent. of the amount determined under the above clause in the Fund constituted under section 57 and the remaining fifty per cent. of the amount in the

Fund constituted under section 57 of the Goods and Services Tax Act, 2017 of the concerned State, where the eligible person does not claim return of the amount or is not identifiable;

(d) imposition of penalty as specified under the Act; and

(e) cancellation of registration under the Act.

Explanation: For the purpose of this sub-rule, the expression, “concerned State” means the State in respect of which the Authority passes an order.”;

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