CIRCULARS

1. CLARIFICATION ON LAPSING OF ITC AS ON 31st JULY 2018 IN CASE OF FABRIC MANUFACTURERS: 

In Fabric manufacturing, inputs like yarn, process chemicals, packing materials and other services are sub− ject to GST at varied rates from 5% to 18%. The finished fabrics are subject to GST at 5% which has resulted into inverted tax structure i.e. tax paid on inputs is more than the tax payable on output. Section 54(3) has provided for refund of such excess input tax in these scenarios. However, Notification No. 5ƒ2017−Central Tax dated 28.06.2017 was issued by Government to deny refund on 10 categories of fabrics. This restriction was taken away through Notification No. 20ƒ2018−Central Tax with effect from 01.08.2018.

In this regard, it is clarified that Section 54(3) permits refund of ITC availed on inputs alone under inverted tax structure scenario. The excess input tax credit aGer paying the tax for the month of July, 2018 that is at− tributable to inputs alone shall be lapsed out. The same shall be determined using the formula prescribed in Rule 89(5) of CGST Rules, 2017. It is also clarified that no refund of ITC availed on input services and capi−

t1a.l goods can be claimed and need not be lapsed. It is further clarified that there no restriction with respect to  claim  of  refund  of  ITC  accumulated  because  of  exports  i.e.  Zero−rated  supplies  in  Notification

5ƒ2017−Central Tax and accordingly ITC on Zero rated supplies shall not lapse. 

{Circular No.56/30/2018-GST dated 24th August 2018} 

Read more: SBS "i" 9th Edition

Key Topics:

EDITORIAL

GENERAL LAWS

• LEGAL ENTITY IDENTIFIER

GST

• COMMON CREDITS
• ANALYSIS OF GSTR - 9, GSTR - 9C AND ANNUAL AUDIT

RERA

• ANALYSIS OF JUDGMENT IN LAVASA CORPORATION

DIRECT TAXES

• NOTE ON APPLICABILITY OF SEC 44ADA

Key Topics:

AUDIT

• SA 700 FORMING AN OPINION AND REPORTING ON FINANCIAL STATEMENTS

DIRECT TAX

• ICDS-9_BORROWING COSTS

COMPANIES ACT, 2013

• RULES, CIRCULARS, NOTIFICATIONS AND ORDERS ISSUED DURING THE MONTH OF AUGUST, 2018

Proposals for changes in SEZ and Allied Laws

 by

SBS and Company LLP

Chartered Accountants

It gives me immense pleasure to congratulate your good self on being elected as member of committee responsible for recommending changes to the SEZ legislation. I am sure that this is one of the important mile stone in your efforts to make Sri City attain much brighter spot on the globe.

On behalf of our firm, I am herewith submitting certain issues which the firm encounters while helping our SEZ clients. The probable ways of addressing such issues were also detailed. I wish the committee will take the issues into consideration and deliberate on them and make recommendations for making the SEZ space more vibrant.

I once again on behalf of our firm congratulate your good self and submit our recommendations for due consideration. I shall assure that our team will be available at any time for discussion of the issues submitted hereunder. I shall also assure that our team can provide any technical or professional support required in this connection.

Read more: SEZ Proposals by SBS and Company LLP