Page 10 - BF Cover February 2019

GST UPDATE

GST

NEWS
NEWS
NEWS
NEWS
NEWS

Businesses allowed to claim GST input credit benefit till March Central Government ex-
The Finance Ministry has allowed businesses to claim input tax credit benefit empts Gem, jewellery
for the first financial year of Goods and Services Tax roll out, till March 2019,
provided it matches with the return filed by exporters from 3% IGST
their suppliers. The deadline for claiming in- Central government has accepted
put tax credit (ITC) ended on October 25, the Gem and Jewelry Export Promo-
2018. Tax experts said that ITC claims were tion Council's
allowed to businesses earlier provided busi- (GJEPC's) de-
nesses had generated invoice, paid taxes and mand to grant
filed returns. However, in the recent order the IGST related ex-
emption on the supply of gold by
CBIC has mandated that ITC claims would have
nominated agencies to exporters of
to be matched with GSTR-2A. GSTR-2A is auto-generated by the systems based
articles of gold.
on sales returns filed by suppliers.
The GST Council recently announced
The Central Board of Indirect Taxes and Customs (CBIC) through a gazette no-
that gem and jewellery exporters will
tification issued an order stating that ITC claims for the maiden year of Goods
no longer have to pay the 3 per cent
and Services Tax (GST) roll out (July 2017 to March 2018) will be allowed till
Integrated Goods and Services Tax
March 31, 2019. Besides, the CBIC has also allowed businesses to correct any
(IGST) to nominated agencies
error or omission in filing of final sales return or GSTR-1 for the period July 2017-
(banks) from January 1, 2019, said
March 2018. Now businesses can correct the errors in the returns to be filed
Pramod Kumar Agrawal, Chairman,
for January-March 2019.
GJEPC. He said the GST Council found
48202 crore GST compensation release to States it necessary to exempt the intra-
State supply of gold as per the First
The central government has released Rs 48,202 crore as GST compensation to
Schedule to the Customs Tariff Act,
states during April-November 2018, higher than the Rs 48,178 crore paid in the 1975 (51 of 1975), when supplied by
previous financial year.
the nominated agency under the
Minister of State for Finance Shiv Pratap Shukla said Section 7 of the GST (Com- scheme for "Export Against Supply by
pensation to States) Act, 2017, states that compensation payable to a state for Nominated Agency".
loss of revenue shall be provisionally calculated and released at the end of ev-
"We are also expecting a similar re-
ery two months. "Rs 48,178 crore and Rs 48,202 crore have been released as
lief to the exporters of articles of sil-
GST compensation to states/UTs for the FY2017-18 and FY2018-19 (April 2018 ver and platinum."
to November 2018), respectively," Shukla said.

10 | 2019 | FEBRUARY | BANKING FINANCE