23rd GST Council decisions issued at Midnight

22 GST Notifications to give effect to 23rd GST Council decisions issued at Midnight

CBEC has issued 22 Notifications related to IGST, CGST, and UTGST dated: 14/11/2017 which are effective from 15th November 2017 on the Midnight of 14th November 2017 as per its tradition of doing everything last minute. Notifications were hosted on CBEC websites around 23.15 or after on 14th November or on 15th November. So CBEC issues notification on midnight of 14th and expected taxpayers to understand then within few minutes of issue and implement immediately.

Although Notifications are to give taxpayers much desired relaxations but issue in time of the same would have been better.

Notifications are issued to give effect to 23rd GST Council Decisions / Recommendations. Link to Such notifications are as follows:-

S.	Title	Notification No.	Date
No.
1	CBEC exempt CGST on admission to protected	Notification No. 47/2017-Central	14/11/2017
	monument	Tax (Rate)
2	Revised CGST Rate for restaurants & job work on	Notification No. 46/2017-Central	14/11/2017
	handicraft goods notified	Tax (Rate)
3	Concessional CGST rate of 2.5% on scientific &	Notification No. 45/2017-Central	14/11/2017
	technical equipments	Tax (Rate)
4	CGST: CBEC notifies restriction of ITC on certain	Notification No. 44/2017-Central	14/11/2017
	fabrics	Tax (Rate)
5	CGST: CBEC notifies Reverse charge on raw cotton	Notification No. 43/2017-Central	14/11/2017
		Tax (Rate)
6	CBEC notifies GST exemptions as decided in 23rd GST	Notification No. 42/2017-Central	14/11/2017
	council Meeting	Tax (Rate)
7	Revised CGST Rates to give effect to GST council	Notification No. 41/2017-Central	14/11/2017
	decisions notified	Tax (Rate)
8	Reg. IGST on supply of Skimmed milk powder, or	Notification No. 50/2017-	14/11/2017
	concentrated milk	Integrated Tax (Rate)
9	IGST exemption on Services by way of admission to a	Notification No. 49/2017-	14/11/2017
	protected monument	Integrated Tax (Rate)
10	Revised IGST Rate for restaurants & job work on	Notification No. 48/2017-Integrated	14/11/2017
	handicraft goods notified	Tax (Rate)
11	Reg. concessional IGST rate of 5% on scientific &	Notification No. 47/2017-Integrated	14/11/2017
	technical equipments	Tax (Rate)

12	Restriction of ITC on certain fabrics under IGST Act,	Notification No. 46/2017-	14/11/2017
	2017 notified	Integrated Tax (Rate)
13	CBEC notifies Reverse charge on raw cotton under	Notification No. 45/2017-	14/11/2017
	IGST Act, 2017	Integrated Tax (Rate)
14	CBEC notifies IGST exemptions as decided in 23rd	Notification No. 44/2017-	14/11/2017
	GST council Meeting	Integrated Tax (Rate)
15	Revised IGST Rates to give effect to GST council	Notification No. 43/2017-	14/11/2017
	decisions notified	Integrated Tax (Rate)
16	UTGST exemption on Services by way of admission to	Notification No. 47/2017-Union	14/11/2017
	a protected monument	Territory tax(rate),
17	Revised UTGST Rate for restaurants & job work on	Notification No. 46/2017-Union	14/11/2017
	handicraft goods notified	Territory tax(rate),
18	Concessional UTGST rate of 2.5% on scientific &	Notification No. 45/2017-Union	14/11/2017
	technical equipments	Territory tax(rate),
19	UTGST: CBEC notifies restriction of ITC on certain	Notification No. 44/2017-Union	14/11/2017
	fabrics	Territory tax(rate),
20	UTGST: CBEC notifies Reverse charge on raw cotton	Notification No. 43/2017-Union	14/11/2017
		Territory tax(rate),
21	CBEC notifies UTGST exemptions as decided in 23rd	Notification No. 42/2017-Union	14/11/2017
	GST council Meeting	Territory tax(rate),
22	Revised UTGST Rates to give effect to GST council	Notification No. 41/2017-Union	14/11/2017
	decisions notified	Territory tax(rate)

Registration Process Of LLP in India.

Registration Process For LLP

Recently most entrepreneurs have started opting for Limited Liability Partnership, considering it has most positive features of Partnership and Companies. It is hybrid form which incorporates benefits of both partnership and companies. It has the following features:

• The liability of each partner is limited to the contribution mention in agreement.
• The cost of formation is limited.
• Less restriction and compliance.
• Separate Legal Entity

Following is Step wise Registration process for incorporation:

Step 1: Obtain Designated Identification Number (DIN)
Every individual intending to be appointed as designated partner of a limited liability partnership has to make an application for allotment of Director Identification Number. MCA has vide its notification amended the limited liability partnership rules, 2009. Now instead of DPIN, every partner who will be appointed as designated partner, will need to apply for DIN and not DPIN.

There is a fixed fee of Rs100/- for this eForm and it can only be paid through online mode (credit card/ internet banking). There shall be no requirement for physical submission of the documents at the DIN cell. All the necessary documents shall need to be scanned and attached in the eForm and submitted online.

While filing DIN form ensure following:

• Single alphabet is not allowed in field ‘first name’ and ‘last name’.
• Prefixes like Mr. / Ms. / Kumari / Shri etc. are not acceptable.
• The name should be filled exactly as given in the identity proof, including the spelling.
• It is mandatory to attach photograph giving front view of the full face of the applicant.
• PAN is mandatory for Indian nationals. Applicant’s name (first, middle and last name), applicant father’s name (first, middle and last name) and date of birth should be as per the income-tax PAN details.
• Passport number is mandatory for foreign nationals.
• Proof of Identity of applicant – In case of Indian nationals, Income-tax PAN is a mandatory requirement for proof of identity. In case of foreign nationals, passport is a mandatory requirement for proof of identity.
• Proof of residence of applicant – Address proofs like passport, election (voter identity) card, ration card, driving license, electricity bill, telephone bill or bank account statement shall be attached and should be in the name of applicant only.
• In case of Indian applicant, documents should not be older than 2 months from the date of filing of the form.
• In case of foreign applicant, address proof should not be older than 1 year from the date of filing of the eForm.
• Affidavit need to made by the applicant as per Annexure – 1 of the DIN Rules on Stamp paper which shall be notarized
• DIN application needs to be by signed professionals.
• Submit the application form online. The system will generate a provisional DIN.

Step 2: Register Digital Signature of Designated Partner
Partner/Designated partner of LLP/proposed LLP, whose signatures are to be affixed on the e-forms has to obtain class 2 or class 3 Digital Signature Certificate (DSC) from any authorised certifying agency. Register Digital Signature of Designated Partner on the website of Ministry of Corporate Affairs. Upload digital signature certificate. On successful registration, system will give a message that you have been registered successfully.

Step 3: Filing of Form 1 for Name Availability

• Name search facility (of existing companies / LLPs) is available on MCA portal. The system will provide the list of similar/closely resembling names of existing companies/LLPs based on the search criteria filled up. Download and fill Form-1 for reservation of name and fill in the details. Select name of the proposed LLP (up to 6 choices can be indicated).
• Enter the details of the applicant. Select whether applicant is an ‘Individual as partner’ or ‘Nominee of a body corporate’.
• Enter DIN of the applicant. DIN should be an approved DIN. On clicking the Pre-Fill button, system will automatically display the name, present residential address, phone, mobile, fax and e-mail ID of the applicant.
• Any partner or designated partner in the proposed LLP may submit Form-1.
• In case the Designated Partner is nominee of a body corporate, select the type of body corporate. Enter the corporate identity number (CIN) or foreign company registration number (FCRN) or Limited Liability Partnership Identification number (LLPIN) or Foreign Limited Liability Partnership Identification number (FLLPIN) or any other identification number, as applicable.
• Details of minimum two designated partners of the proposed LLP, one of them must be a resident of India, is required to be filled in the application for reservation of name. Only individuals or nominees on behalf of the bodies corporate as partners can act as designated partners.
• Ensure that correct details have been provided as the same shall be automatically pre-filled in Form-2 for incorporation of LLP.
• Append digital signatures and submit the e-form. Pay the necessary fee of Rs 200/-.
• Once the name is reserved by the Registrar, log on to the portal and fill up Form-2

Step 4: Filing of Form 2 for Incorporation and Subscription Document

• Mention Total Number of Partners and Designated Partners. Fill up details of same.
• Enter the amount of proposed monetary value of partner’s contribution in figures and system will automatically display the amount in words.
• Attach details in respect of names of partners/ nominees/ witnesses and their signatures in the format as Subscribers’ sheet attachment.
• Attach proof of registered office address of LLP.
• An individual has to give prior consent to become a designated partner and LLP to file consent in format prescribed.
• Select the state and office of registrar in which registered office of the proposed LLP is to be situated.
• In case the name includes banking, insurance, venture capital, mutual fund, stock exchange, Chartered Accountant, Company Secretary, Cost Accountant, Advocate, CA, CS, CMA, asset management, non-banking financial, architect, merchant bankers, chit fund, securitization and reconstruction etc., a copy of the in-principle approval of the regulatory authority or council governing concerned profession should be attached with Form-2.
• Pay the prescribed registration fee as per LLP Rules, based on the total monetary value of contribution of partners in the proposed LLP.
• On submission of complete documents the Registrar after satisfying himself about compliance with relevant provisions of the LLP Act will register the LLP and will issue a certificate of incorporation

Step 5: Drafting of LLP Agreement
LLP agreement has to be drafted line with LLP Act. It is not mandatory to file LLP agreement at the time of registration and same can be file within 30 days. Designated partners are responsible for doing all acts, matters and things that are required to be done for complying with the provisions of the LLP act. They are liable to all penalties imposed on the LLP. So it is very important to draft LLP agreement with professional help.

The following clauses are important to be incorporated in agreement:

• Name, Object and Registered Office Of LLP.
• The initial Contribution of the LLP by Partners
• The net profits or losses sharing ratios
• Detail of Designated Partners.
• Interest payable on Capital Loan prescribed u/s. 40(b) of the Income-tax Act, 1961
• Remuneration payable to the working partners or as prescribed u/s. 40(b) of the Income-tax Act, 1961
• Mode of operation of Bank Accounts
• Maintenance of Book of Account
• Appointment of arbitrator
• Rights and Duties of Partners
• Rights and Duties of Designated Partners
• Indemnity clause
• Goodwill clause
• Procedure to appoint Auditor
• Admission of New Partner
• Meeting
• Cessation of Existing Partners
• Winding up of LLP
• Amendments of LLP
• Extent of Liability of LLP
• Liability of Partners in LLP
• Ancillary or other business carried over by LLP

Step 6: Filing of Form 3 – LLP Agreement
The LLP agreement has to be uploaded. Once it gets approved all the formalities for registration gets completed.

23rd GST Council Meeting

23rd GST Council Meeting – GST Rate Changes for Goods

In 23rd GST Council Meeting. GST rate reduced for various goods and services mainly for 28% slab rate. The GST rates changes will tremendously reduce the tax burden on the common man and boost the economy.In this article, we look at a summary of GST rate changes announced in the 23rd GST Council Meeting held on 10th November 2017.

GST Rate Reduced from 28% to 18%

For the following goods, GST rate has been reduced from 28% to 18%. After the proposed change, GST @ 28% rate applicable only on 50 items. Majority of the items for which GST rate was reduced from 28% to 18% are building materials, personal care items and equipments.

Building Materials

• Wire, cables, insulated conductors, electrical insulators, electrical plugs, switches, sockets, fuses, relays, electrical connectors.
• Electrical boards, panels, consoles, cabinets etc for electric control or distribution.
• Particle/fibre boards and ply wood.
• Article of wood, wooden frame, paving block.
• Sanitary ware and parts thereof of all kind
• Articles of plastic, floor covering, baths, shower, sinks, washbasins, seats, sanitary ware of plastic
• Slabs of marbles and granite
• Goods of marble and granite such as tiles
• Ceramic tiles of all kinds
• Fans, pumps, compressors
• Lamp and light fitting
• Door, windows and frames of aluminium.
• Articles of plaster such as board, sheet
• Articles of cement or concrete or stone and artificial stone
• Articles of asphalt or slate
• Articles of mica
• Ceramic flooring blocks, pipes, conduit, pipe fitting Wall paper and wall covering
• Glass of all kinds and articles thereof such as mirror, safety glass, sheets, glassware

Furniture and Home Decorations

• Furniture, mattress, bedding and similar furnishing
• Miscellaneous articles such as vacuum flasks, lighters
• Trunk, suitcase, vanity cases, brief cases, travelling bags and other hand bags, cases
• Articles of cutlery, stoves, cookers and similar non electric domestic appliances
• All musical instruments and their parts
• Artificial flowers, foliage and artificial fruits
• Office or desk equipment
• Fire extinguishers and fire extinguishing charge
• Physical exercise equipment, festival and carnival equipment, swings, shooting galleries, roundabouts, gymnastic and athletic equipment

Personal Care Items

• Detergents, washing and cleaning preparations
• Liquid or cream for washing the skin
• Shampoos; Hair cream, Hair dyes (natural, herbal or synthetic) and similar other goods; henna powder or paste, not mixed with any other ingredient;
• Pre-shave, shaving or after-shave preparations, personal deodorants, bath preparations, perfumery, cosmetic or toilet preparations, room deodorisers
• Perfumes and toilet waters
• Beauty or make-up preparations
• Razor and razor blades

Electronic & Office Stationeries

• Primary cell and primary batteries
• Multi-functional printers, cartridges
• Electrical, electronic weighing machinery
• Electrical apparatus for radio and television broadcasting
• Sound recording or reproducing apparatus
• Signalling, safety or traffic control equipment for transports
• Goggles, binoculars, telescope
• Cinematographic cameras and projectors, image projector
• Microscope, specified laboratory equipment, specified scientific equipment such as for meteorology, hydrology, oceanography, geology

Clothing & Personal Items

• Wrist watches, clocks, watch movement, watch cases, straps, parts
• Article of apparel & clothing accessories of leather, guts, furskin, artificial fur and other articles such as saddlery and harness for any animal

Equipment, Firework & Industrial Items

• Fork lifts, lifting and handling equipment
• Bull dozers, excavators, loaders, road rollers
• Earth moving and levelling machinery
• Escalators, Cooling towers, pressure vessels, reactors
• Crankshaft for sewing machine, tailor’s dummies, bearing housings, gears and gearing; ball or roller screws; gaskets
• Explosive, anti-knocking preparation, fireworks
• Rubber tubes and miscellaneous articles of rubber
• Solvent, thinners, hydraulic fluids, anti-freezing preparation

Food and Food Preparations

• Cocoa butter, fat, oil powder,
• Extract, essence ad concentrates of coffee, miscellaneous food preparations
• Chocolates, Chewing gum / bubble gum
• Malt extract and food preparations of flour, groats, meal, starch or malt extract
• Waffles and wafers coated with chocolate or containing chocolate

GST Rate Reduced from 28% to 12%

For the following goods, GST rate has been reduced from 28% to 12%:

• Wet grinders consisting of stone as grinder
• Tanks and other armoured fighting vehicles

GST Rate Reduced from 18% to 12%

For the following goods, GST rate has been reduced from 18% to 12%:

• Condensed milk
• Refined sugar and sugar cubes
• Pasta
• Curry paste, mayonnaise and salad dressings, mixed condiments and mixei seasoning
• Diabetic food
• Medicinal grade oxygen
• Printing ink
• Hand bags and shopping bags of jute and cotton
• Hats (knitted or crocheted)
• Parts of specified agricultural, horticultural, forestry, harvesting or threshing machinery
• Specified parts of sewing machine
• Spectacles frames
• Furniture wholly made of bamboo or cane

GST Rate Reduced from 18% to 5%

For the following goods, GST rate has been reduced from 18% to 5%:

• Puffed rice chikki, peanut chikki, sesame chikki, revdi, tilrevdi, khaza, kazuali, groundnut sweets gatta, kuliya
• Flour of potatoes packed in unit container of a brand name
• Chutney powder
• Fly ash
• Sulphur recovered in refining of crude
• Fly ash aggregate with 90% or more fly ash content

GST Rate Reduced from 12% to 5%

For the following goods, GST rate has been reduced from 12% to 5%:

• Dry coconut
• Narrow woven fabric including cotton newar [with no refund of unutilised input tax credit]
• Idli, dosa batter
• Finished leather, chamois and composition leather
• Coir cordage and ropes, jute twine, coir products
• Fishing net and fishing hooks
• Worn clothing
• Fly ash brick

GST Rate Reduced from 5% to 0%

For the following goods, GST rate has been reduced from 5% to 0%:

• Guar meal
• Hop cone (other than grounded, powdered or in pellet form)
• Certain dried vegetables such as sweet potatoes, maniac
• Unworked coconut shell
• Fish frozen or dried (not packed in unit container of a brand name)
• Khandsari sugar

GST Rate Changes for Other Goods

GST rates on aircraft engines has been changed from 28% or 18% to 5%. Also the GST rate for aircraft tyres has been changed from 28% to 5% and aircraft seats from 28% to 5%.

The GST rate on bangles of lac/shellac has also been changed from 3% GST rate to Nil.

GST Exemption for Goods Announced in the 23rd GST Council Meeting

• IGST is now not applicable on imports of lifesaving medicine supplied free of cost by overseas supplier for patients, subject to certification by DGHS of Centre or State and certain other conditions .
• IGST is now not applicable on imports of goods (other than motor vehicles) under a lease agreement if IGST is paid on the lease amount.
• IGST will not be applicable on imports of specified goods by a sports person of outstanding eminence, subject to specified conditions.
• GST will not be applicable on specified goods, such as scientific or technical instruments, software, prototype supplied to public funded research institution or a university or IISc, or IlTs or NIT.

To extend IGST exemption presently applicable to skimmed milk powder or concentrated milk, when supplied to distinct person under section 25(4) for use in production of milk for distribution through dairy cooperatives to where such milk is distributed through companies registered under the Companies Act.

More professional items can now be imported on temporary basis without GST  by accredited press persons visiting India to cover certain events, broadcasting equipments, sports items, testing equipment, under ATA carnet system. These goods are to be re-exported after the specified use is over.

Clarification of GST Rate

In addition to the above GST rate changes and exemptions, the GST Council also announced certain clarification to improve ease of doing business in India as follows:

Inter-State Transfer of Equipment

Inter-state movement of goods like rigs, tools, spares and goods on wheel like cranes, not being in the course of furtherance of supply of such goods, does not constitute a supply. This clarification gives major compliance relief to industry as there are frequent inter-state movement of such kind in the course of providing services to customers or for the purposes of getting such goods repaired or refurbished or for any self-use. Service provided using such goods would in any case attract applicable tax.

Raw Cotton Purchase

GST on supply of raw cotton by agriculturist will be liable for GST, which is to be paid by the recipient of such supply under reverse charge.

Supply of E-Waste Products

Supply of e-waste attracts 5% GST rate. Concerned notification to be amended to make it amply clear that this rate applies only to e-waste discarded as waste by the consumer or bulk consumer.